2012 (5) TMI 136 - BOMBAY HIGH COURT

Whether income realized from the sale of land is chargeable to income tax as capital gains or as income from business – Held that:- The sale of the land was not motivated by a desire to make a profit, but to protect the corpus and the resulting expenditure due to litigation – as there were no improvements on the land by way of laying out drainage, levelling or construction of roads it cannot be said that the land was for the purpose or trade - an area of about hundred acres was repurchased cannot be treated as purchase in the commercial sense since it was a repurchase of lands which were declared as surplus under the Urban Land Ceiling Act - the surplus realised on the sale of the land during the assessment years in question was in the nature of capital gains.