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2014 (7) TMI 995 - AT - Income TaxAssessment of income from sale of land Benami property - Held that:- The AO made the addition in the hands of the assessee on protective basis - CIT(A) directed the AO to treat it in the hands of the assessee on substantive basis on the basis of the Shri Man Mohan Raj Singhvi C/o Dinesh Bhandari & Co. Tax Consultants Versus The DCIT, Udaipur [2013 (6) TMI 401 - ITAT JODHPUR] - CIT(A) rightly directed the AO to treat the income in the hands of the assessee from the sale of land on substantive basis. Profit and gains from business OR capital gain Whether the income earned by the assessee was a business income or capital gain - Held that:- The assessee was not having any funds and raised the loans for purchasing the land - The motive of purchase was to earn the profit - The property was also not purchased for a longer period - assessee got the land converted into non-agricultural land and sold it immediately after conversion, the activity carried by the assessee was a business activity Relying upon Sawandas Devram Vs. CIT [1983 (9) TMI 57 - MADHYA PRADESH High Court] - the real intention of the assessee in acquiring the land was not to retain it for himself but to resell it at profit and as such the transaction was an adventure in the nature of trade thus, order passed by the CIT(A) on does not require any interference Decided against Revenue.
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