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2016 (7) TMI 1268 - AT - Income TaxSale consideration taxation - business income or capital gains - Held that:- The intention of the assessee for applying the use of land for NA is clearly established from the fact that the AUDA approved its plan for establishing a show room/work shop at the impugned land. Moreover, the assessee has been consistently showing the said piece of land as a capital asset in its block of assets in the balance sheet. The revenue authorities have simply dismissed the contentions of the assessee without bringing any corroborative evidence on record. If, the revenue alleges that the transaction was an adventure in the nature of trade then the onus was clearly upon them to justify their stand which the lower authorities have completely failed. On the contrary, the facts on record clearly show that the balance of convenience is tilted in favour of the assessee. Considering the fact of Automobiles Dealership with the sequence of events following since the award of dealership of MBIL in 1997, we have no hesitation to hold that the sale consideration has to be taxed under head capital gains and cannot treat the transaction as an adventure in the nature of trade. We, accordingly, set aside the findings of the ld. CIT(A) and direct the A.O to treat the surplus under the head capital gains as returned by the assessee. - Decided in favour of assessee.
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