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TMI Blog2023 (4) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the income earned by the assessee as to whether the same was treated as business income or capital gains and there is no allegation of the AO that the assessee is otherwise not entitled for deduction u/s 54B - No merit in the appeal of the Revenue. - I.T.A No.09/Kol/2021 - - - Dated:- 24-2-2023 - Shri Sanjay Garg, Judicial Member and Dr. Manish Borad, Accountant Member For the Appellant : Shri Manish Tiwari, AR For the Respondent : Smt. Ranu Biswas, Addl. CIT-DR ORDER PER SANJAY GARG, JUDICIAL MEMBER: The present appeal has been preferred by the Revenue against the order dated 03.09.2020 of the Commissioner of Income Tax(Appeals)-15, Kolkata [hereinafter referred to as the CIT(A) ] passed u/s 250 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown this aforesaid income as capital gains. The assessee also claimed cost of acquisition, improvement and also claimed deduction u/s 54B of the Act while offering capital gains for taxation. The Assessing Officer, however, treated the entire sale consideration received by the assessee as business income of the assessee. 5. Before the CIT(A), the assessee claimed that the land was always treated as capital asset/investment by the assessee. That only quantum of the sale consideration was fixed as a percentage of the consideration received by the developer but that itself does not tantamount to be business income of the assessee. It was submitted that the sale proceeds received from the prospective buyers by the developer may be busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. counsel, in this respect, has submitted that the case of the assessee was selected only for limited scrutiny in respect of deduction/exemption claimed from capital gains u/s 54B of the Act. Therefore, the Assessing Officer was supposed to restrict his scrutiny regarding the liability of the assessee to claim deduction u/s 54B of the Act and the Assessing Officer was not supposed to go into the issue as to whether the sale consideration received by the assessee was business income or capital gains. 8. We find force in the aforesaid contention of the assessee. The case of the assessee was selected for limited scrutiny to examine the claim of deduction/exemption out of capital gains earned by the assessee. There was not any mandate to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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