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2014 (8) TMI 594 - HC - Income TaxNature of amount received in pursuance of Consent decree by HC – Purchase of land – Business income or Capital gain - Land was purchased but possession was not given to the assessee - During the pendency of the proceedings, consent decree was passed in the suit itself and in pursuance of the same ₹ 35,00,000/- was paid to the Assessee during the assessment year under consideration - The argument was that the agricultural land was agreed to be purchased and that is how the deal was struck, however, on payment of earnest money possession was never handed over. Thus, it is a capital investment in the property - tribunal found the transaction of purchase of land was in the nature of an adventure in trade and not as income in the nature of capital gains – Held that:- Authorities below rightly treated this sum as a receipt falling under Section 28(iv) of the I. T. Act - The Tribunal having clearly held that the land was in Urban Agglomeration, non agricultural user of the land was permissible - The land falls within the prescribed area of the Urban Land Ceiling Act and a plan had also been sanctioned for the proposed housing scheme under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 - The subsequent conduct of the Assessee is consistent with the intent in acquiring the rights in the property, then all the more the ITO, as also the Commissioner and equally the Tribunal have not committed any error in holding that this was a sum or income chargeable to tax u/s 28(iv) of the I. T. Act – no substantial question of law arises for consideration - Decided against Assessee.
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