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2010 (12) TMI 233 - AT - Income TaxIncome from other business or under the head capital gains - CIT(A) viewed the compensation received by the assessee as income from business, as a receipt received for termination of a trading contract which is a normal incident of the business, and accordingly directed the Assessing Officer to tax the income under the head "business” - The assessee had obtained a right to have a conveyance executed by the Nigams in respect of the plot admeasuring 1267 sq. mts - Held that: - The CIT(A), with respect, appears to have thought that the additional FSI is to belong to the assessee and Small Success which they are going to develop for their own profit. It is from the factually erroneous finding that he has drawn the conclusion that there is a business motive and hence the receipt for surrendering the rights over the property should be assessed as business profits, treating it to be a case of a normal cancellation of a contract entered into in the course of the business of constructing and selling properties. The entire case-law referred to by him has been held applicable on the basis of the erroneous conclusion. - The assessee's contention that it should be assessed under the head "capital gains" with all the allowable deductions is upheld – Appeal is partly allowed
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