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TMI Blog2025 (2) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, the Revenue has accepted the property as investment and sale of part of such property as Long Term Capital Gain the principle of consistency demands that when there is no change in the nature of holding of the property in impugned assessment year, the gain on sale of part of such property cannot be re-characterized as 'Business Income'. Decided against revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... presenting the department vehemently supporting findings of the AO submitted that the assessee is a builder. The assessee constructed shops on land at 99, Rajpur Road, Dehradun and sold the shops. The activity of plotting, construction of shops and sale thereof, is an adventure in the nature of trade, hence, any gain on sale of such shops is liable to be taxed under the head, Income from Business and Profession. He further referred to the observations of AO in para 5.1 of the assessment order, wherein extracts from the partnership deed dated 07.06.2006 are reproduced. He pointed that the nature of business as mentioned in partnership deed is, Business of real estate, builders, construction of shopping malls, multiplexes, restaurants, hotel, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r i.e. AY 2017- 18, the assessee had sold some shops and offered gain on sale of shops as Long Term Capital Gain. The same was accepted by the AO. To support his contention; he referred to assessment order dated 09.12.2019 passed u/s. 143(3) of the Act for AY 2017-18 at page no. 51 to 65 of the paper book. The ld. AR of the assessee further placed reliance on Board Circular No.4/2007 dated 15.06.2007 to submit that the assessee can have two separate portfolios i.e. investment portfolio and trading portfolio. The Revenue recognizes income under investment portfolio as capital gains and income in trading portfolio, comprising of stock in trade as 'Business Income'. To further buttress his argument, he placed reliance on the decision of the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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