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2013 (3) TMI 330 - HC - Income TaxTaxability of sale of land - ITAT deleted the addition as not taxable in the instant assessment year - Held that:- Stand and approach adopted by the Tribunal is acceptable as there was no evidence of any confirmed transaction in the year in question. As such, the addition could not have been made on the ground that the transaction had been concluded. No agreement has been signed in this year. The possession has also not been delivered in this year. The twin conditions of execution of written agreement and handing over of the possession have to be cumulatively satisfied in order to bring the case within the ambit of section 2(47)(v) read with section 53A of the Transfer of Property Act. None of these conditions are satisfied. Therefore, it is held that the property has not been transferred in this year - no question of law arises for consideration - in favour of assessee. Profits from the sale of lands - whether taxable under the head profits and gains of business or profession OR capital gain - Held that:- Tribunal returned a finding that in the present case, the land was purchased and was shown as an asset in the balance sheet and that the land had also been used for agricultural purposes. As the land had been held for a long period of time, the same having been purchased in 1994-96 there was no evidence that borrowed capital had been used for the purchase, thus Tribunal concluded that the land was held as an asset and, therefore, the assessee had appropriately offered it for taxation under the head ‘capital gains’. No substantial question of law arises for consideration - in favour of assessee.
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