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2016 (8) TMI 908 - HC - Income TaxSale of land - liable to be taxed as business profit or capital gain - Held that:- It appears from the record that the entire plot of land was purchased way back in 1971 in the name of HUF. Thereafter, necessary permission under the Urban Land Ceiling Act for transferring the land was taken from the District Collector. It further appears that there was no sale of the land in the past except the sale of ½ portion of the said land in the year under appeal and the remaining ½ portion of land in the previous year. Both the parcels of land were sold to the same party. All throughout, the assessee was the owner of the land in question and no transfer of rights in favour of any third party ever took place until the ½ portion of said land was sold in the year preceeding the relevant year. Therefore, under no circumstances, the transaction could have been termed a business adventure. In our opinion, the Tribunal committed serious error in upholding the order of CIT(A) of declaring the transaction a business adventure since it is a capital gain. - Decided in favour of the assessee.
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