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2016 (5) TMI 872 - AT - Income TaxSale of shops/flats - Capital gain v/s business income - Held that:- The assessee had constructed area in form of shops and flats. Originally this land was belonged to his grandmother Rani Sahiba Smt. Rajkanwar Nathawat Ji, who made agreement in 1995 with the builder namely M/s Krisha Pratap & Co. Pvt. Ltd. to build and construct the mall. They made agreement to share the constructed area on 50-50 basis. All the cost was borne by the builder. This land has not been shown as a stock in trade in the books of account by the assessee. The assessee is not in the activity of regularly purchasing and selling the flats/shops and it is not organized business activity of the assessee. There was no intention of the assessee to enter into real estate business. The assessee has also shown sale consideration on the basis of valuation of stamp authority U/s 50C of the Act. Thus, the assessee rightly claimed long term capital gain on sale of shops/flats during the year under consideration. Addition n account of deduction U/s 24(a) - Held that:- The assessee, undisputedly, has disclosed the rental income from shops of mall under the head income from house property. The deduction U/s 24(a) is mandatory, therefore, we uphold the order of the ld CIT(A).
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