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2016 (7) TMI 687 - AT - Income TaxTreatment of gains arising on sale of plot - Capital gain v/s business income - nature of activity - intention - Held that:- The intention at the time of purchase of land was for the purpose of investment and merely because the bigger plot was sub divided into smaller plots does not establish that the assessee’s intention was to carry on the business activity. In this regard, other circumstances of the case have to be kept in mind i.e. as against the investment in August, 2000, as against part development of projects, the assessee had sold two plots of land during the year and other years, the balance plots of land are still available with the assessee. Merely because the assessee had divided bigger plot into small plots does not establish the same to be business activity carried on by the assessee or adventure in the nature of trade, keeping in view the other circumstances of the case. Accordingly, we find no merit in the order of CIT(A) in this regard and reversing the same, we direct the Assessing Officer to compute the income under the head ‘income from long term capital gains’. - Decided in favour of assessee
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