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2013 (9) TMI 49 - AT - Income TaxSale of land after converting it into plots - Business income or capital gain - assessee HUF was having agricultural land which was converted into non-agricultural land and certain development expenditure was incurred and then plots were sold in few years. - Deduction u/s 54EC & 54F - Held that:- a clear cut distinction is that this appellant has not acquired the land but the land was inherited by the assessee, therefore, towards purchase of land no investment was made by this assessee. Hence, there was no question of examining the intention of the assessee at the time of acquisition of this asset - there was no commercial intention when the land came into the possession of the assessee. It was an automatic acquisition of land through inheritance - whereof assessee has converted ancestral land into stock in trade of his business and sold it, since sale of plot was a solitary transaction and was completed within a short period, therefore, surplus resulting from such transaction was held to be taxable as capital gains and not as business income - Following decision of Commissioner Of Income-Tax Versus V. A. Trivedi [1987 (1) TMI 12 - BOMBAY High Court] and Commissioner of Income-Tax (Central), Calcutta Versus Daulat Ram Rawatmall [1972 (9) TMI 9 - SUPREME Court] - Decided in favour of assessee.
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