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2012 (7) TMI 212 - AT - Income TaxProfits from the sale of the property - AO treated it to be as business income pointing to the object clause of the partnership deed which include objects such as carrying on business as dealer, contractor, proprietor and the dealer in land, building, shops - assessee treated it as “Long Term Capital Gain” - Held that:- As the partners have resolved to discontinue the business after 1994 and replace the same with the objective of investment in the real estate or other investment in which the benefits of receiving the income from such investment as well as appreciation in the investment is more. During the said period of the business activity, the assessee had undertaken only one project. Thereafter, the assessee has not done any activity except for purchasing the property at Khetwadi with 72 tenants in November, 1997 - as decided in CIT vs. Suresh Chand Goyal [2007 (1) TMI 90 (HC)] that an isolated transaction or activity can also be part of business, but to consider the question of business, there must be regular activity of purchasing and selling. Considering the statement of total income shows that in treating the business income, the A.O. himself has accepted (a) index cost of acquisition and (b) exemption u/s.54EC. The A.O. cannot blow hot and cold in the same breath - in favour of assessee.
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