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2013 (10) TMI 778 - AT - Income TaxDeduction u/s 54EC of the Income Tax Act – Classification of heads of Income – Whether the income from sale of land will fall under the head ‘Income from the head Capital gain’ or ‘Income from the business’ – Held that:- Reliance has been placed upon the case of CIT Vs. Suresh Chand Goyal, [2007 (1) TMI 90 - MADHYA PRADESH HIGH COURT] - The facts of the above case are similar to the case of Assessee in the present case wherein the land instead of receiving as a gift was received by way of inheritance. Thus, this activity cannot come within the purview of adventure in the nature of trade and commerce so as to treat it as business. Therefore, respectfully following the said decision in the case of CIT Vs. Suresh Chand Goyal (supra), earnings on sale of land in this case was in the nature of capital gain and, therefore, not assessable as income from business. AO and the CIT(A) have erred in treating the entire capital gain as business income, both on facts as well as on law - Assessee is not in the activity of business and, more so, not in the adventure in the nature of trade - Grounds raised by Assessee are allowed and directed the AO to treat the capital gain offered by Assessee as such and allow deduction u/s 54EC, as claimed by Assessee – Decided in favor of Assessee.
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