2007 (12) TMI 549

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..... SARATHI SRI. Y.V. RAVIRAJ, ADVOCATE JUDGMENT This appeal is by the revenue challenging the order passed by the Income Tax Appellate Tribunal, Bangalore Bench, dated 30th January 2002 raising the following substantial question of law:- Whether on facts and in the circumstances if the assessee after closing the hotel business has sold the premises bit by converting it into small plots amounts to bus .....

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..... o 63 persons under separate sale deeds and developing the remaining portion of the property along with the developer under a joint venture amounts to business and does not attract the capital gain. Therefore, the Commissioner of Income Tax relying upon the judgment of the supreme Court in JANAKI RAM BAHADUR RAM -VS- COMMISSIONER OF INCOME TAX, CALCUTTA (57 ITR 21) set aside the order of assessment .....

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..... s also not in dispute that the hotel was run by the assessee for several years. After closing the hotel business, it was open for the assessee either to sell the entire property under one sale deed or under different sale deeds by converting it into bigger plots or smaller plots. If the assessee with an intention to get more sale consideration has sold the plots to 63 different persons and the rem .....

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