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2019 (1) TMI 682 - ITAT PUNETreating the gain on sale of land as Capital Gain - whether the land was purchased as business asset or for investment as capital asset? - Held that:- Joint Venture does not contain any contract to transfer for consideration, any immovable property. The Joint Venture Agreement in the present case does not fall within the category of documents of which registration is compulsory u/s. 17 of the Registration Act, 1908. Hence, the second reasoning given by the Revenue to discard Joint Venture Agreement holds no water. The assessee has discharged his onus by furnishing Joint Venture Agreement reflecting his intention at the time of purchase of land. A Joint Venture Agreement placed on record shows the intention of the assessee to develop the land and sell the same after plotting. Since, the entire chunk of land was sold in a short span of two months time from the date of purchase that explains the reason for not seeking any approvals from Government authority for plotting etc. or carrying out any other development activity on the land. Thus, from the perusal of documents on record we find merit in the submissions of the assessee that the land was purchased by the assessee with the intention to exploit it commercially and to hold it as business asset. Since, we have held the land as business asset, the provisions of section 50C does not get attracted. Addition on account of cash deposit in the bank - Held that:- CIT (Appeals) accepted the explanation of assessee to the extent of gifts ₹ 20,00,000/- received by the assessee from his sons and after adjusting the same restricted the addition to ₹ 6,00,000/-. Before us the assessee has not been able to controvert the findings of Commissioner of Income Tax (Appeals). Hence, we do not find any reason to interfere with the findings of Commissioner of Income Tax (Appeals) on this ground. - Appeal of assessee partly allowed.
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