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2015 (9) TMI 953 - AT - Income TaxTreating the built up area of a property as stock-in-trade instead of part of the capital asset - Disallowance of benefit of indexation on capital gains - Held that:- The assessee had not sold any part of the property except the above mentioned two flats, that he had rented out his share of property to have constant rental income,that the income earned by the assessee was capital gains and not income from business or trade, that the assessee had parted his right to the extent of 50% of the land, that building could not have been constructed separately without its base on the land,that the land under the building could not be used separately, the cost of construction of the area would be equal to 50% of the market value of the land plus value of additional FSI if any,that he was entitled to proportionate claim of deduction for cost of construction, that assessee was also eligible for indexation as per the provisions of the Act. We find that in the case under consideration the assessee had sold two units and was having rental income from the remaining flats he was offereing the rental income under the head ‘house property income’. The assessee was not carrying out any business,that the built up area was not stock in trade and that he was entitled to the benefit of inflation index - Decided in favour of the assessee.
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