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2015 (11) TMI 1010 - ITAT MUMBAITaxability of the income gained by the assessee from transfer of the assessee’s right in ‘5 office premises’ - whether the same are to be assessed under the head ‘Long Term Capital Gains’ or as ‘Income from Other Sources’? - Held that:- In the case in hand neither the property in question i.e. the so called ‘office premises’ was in existence nor its building plan or specifications were approved from the Municipal Corporation and neither any construction activity or commencement of the project had started. There is no document on the file which may suggest that there was even very likelihood of the alleged property coming into existence in the near future giving any right to the seller to sale any interest in the same or any accrual of right in favour of the intending purchaser. Coming to the sale of the said rights. The excuse given by the assessee was that since he was not involved in any activity of information technology, hence the offices be sold to the another party. As observed above, the fact that the said office premises alleged to be allotted to the assessee could be used only for activity of information technology was very much in the knowledge of the assessee on the date of making the payment i.e. on 02.09.05 and even on 04.08.06 when the subsequent allotment letter was issued. The assessee did not revert back to the builder that since he was not in the activity of information technology, hence his principal amount be refunded. The facts itself speak that the assessee had advanced the money to the builder to make quick profits either by way of interest or by way of share in the profits which the builder may gain by selling the properties. The assessee neither executed any conveyance deed nor had been consenting party to any deed for conveyance executed between the builder and the actual purchaser of the property. The possession and ownership of the offices in question always remained with the builder. The assessee had been offered the amount of interest/profit on the finances provided by the assessee to the builder. Under such circumstances, the income accrued to the assessee relating to the above transaction has rightly been assessed by the lower authorities as income from other sources. We do not find any infirmity in the order of the Ld. CIT(A) in this respect and the same is therefore upheld. - Decided against assessee.
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