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2016 (8) TMI 1210 - AT - Income TaxGain arising on sale of agricultural land - gain treated as income from business and applying the provisions of section 50C of the Act - Held that:- We find merit in the plea of assessee that where the income is being assessed in the hands of assessee as ‘Income from business’, then for computing the said income, the sale consideration as such has to be adopted and after allowing the cost of acquisition of said property, the balance profit / gain is to be assessed in the hands of assessee as ‘Income from business’. The provisions of section 50C are to be applied when the income is to be computed under the head ‘Income from capital gains’ under Chapter IV of the Act. In case the income is being assessed as ‘Income from business’, then there is no merit in applying the provisions of section 50C of the Act. See CIT Vs. Thiruvengadam Investments P. Ltd [2009 (12) TMI 48 - MADRAS HIGH COURT ] The finding of CIT(A) is reversed to the extent of computation of income from business. However, the finding of CIT(A) in assessing the income from gain on sale of agricultural land to be assessed as ‘Income from business’ is upheld. The Assessing Officer is thus, directed to recompute the income in the hands of assessee after affording reasonable opportunity of hearing to the assessee.- Decided partly in favour of assessee.
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