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2012 (5) TMI 145 - ALLAHABAD HIGH COURTDeemed capital gains – AO treated the sale of plots as sale of capital assets and determined the deemed capital gain from sale as per the provisions of section 50C – assessee contented the income from the said transaction is liable to be treated as income from profits and gains of business -Tribunal treated it as stock in trade – Revenue appeal – Held that:- no grievance to the observations of the Tribunal that in the balance sheet also the land has been disclosed as stock in trade and Stock in trade has been excluded from the definition of capital asset - it is for the Revenue to establish that the profit earned in a transaction is within the taxing provision and is on that account liable to be taxed as income - the profit motive in entering a transaction is not decisive, for an accretion to capital does not become taxable income merely because an asset was acquired in the expectation that it may be sold at a profit- there is nothing to show that the assessee desired to controvert the property into some other use - appeal is dismissed stating provisions of section 50C are not applicable with respect of sale of land as sale of land was not capital asset - against revenue.
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