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2015 (5) TMI 1115 - AT - Income TaxSale of property - capital gain or business income - applicability of section 50C - Held that:- On perusal of main objects and other objects mentioned in the Memorandum of Association of the appellant company, in our understanding, there was no clause enabling the appellant company to deal in the properties. The main objects for which the company was incorporated is to carry on business of manufactures, processors, importers, exporters and dealers in all kinds of ferrous and non-ferrous material meant for any industrial or non-industrial use whatsoever and to carry on the business of castings, fabrication, cold and hot rolling, re-rolling, slitting, adgemilting, sheeting, stamping, pressing, extruding, forging, drawing, flattening, straightening, heat treatment of all kinds of steel and other metals or any other stripes, sheets, foils, tapes, wires, rods, plates and any other sections, shapes or forms. Keeping in view the above, we hold that the appellant sold the property only as investor. The version of the appellant that the property is held as stock in trade cannot be believed. Having held that the property sold was held as investment or capital asset, then the provisions of Section 50C are clearly applicable. The fact that the appellant had not received consideration over above sale proceeds stated in the registered document shall have any bearing on the applicability of the provisions of Section 50C of the Act.
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