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2023 (1) TMI 322 - ITAT RAJKOTGain on sale of land - Short Term Capital Gain OR business income - CIT(A) treated the sale transaction as an adventure in the nature of trade - HELD THAT:- The assessee purchased the piece of land on 06.02.2014 for a consideration of Rs. 1.53 crores and within a period of six days thereafter, the assessee entered into a sale agreement dated 12.02.2014 with Agarwalla Teak International Pvt. Ltd. for a consideration of Rs. 1.86 crores. This clearly proves that the assessee has no intention of carrying out any agricultural activity in the land. It clearly proves that the assessee converted the agricultural land into non-agricultural purpose and sold it to M/s. ATIL. As further seen from the registered sale deed that the entire sale consideration was funded by M/s. ATIL to the assessee to buy the above piece of land. Further it is seen from the ld. CIT(A)’s order, CIT(A) directed the AO to delete the claim of Long Term Capital Gain offered by the assessee in the Return of Income filed for the subsequent Assessment Year 2016-17. Thus there is no question of double taxation of the very same sale transaction. The above transaction is to be treated as an adventure in the nature of trade, as the assessee converted the above land as non-agricultural and for the purpose of industrial use and sold it to M/s. Agarwalla Teak International Pvt. Ltd. for a consideration of Rs. 1.86 crores. We do not find any infirmity in the orders passed by the Lower Authorities and therefore does not require any interference. Thus the grounds raised by the assessee is devoid of merits and the same is liable to be rejected. Appeal filed by the Assessee is hereby dismissed.
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