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2009 (3) TMI 126 - HC - Income TaxConversion of agricultural land into industrial use and residential plots – AO concluded that the assessee was carrying on an adventure in the nature of a trade and, therefore, was liable to be taxed under the head “Income from business” and not under the head “Income from capital gains” – held that - taking into consideration the nature of the transaction, it cannot be said by any stretch of imagination that there was any intention to make the profit and even otherwise we do not find that the transaction was in the nature of trade. It is in the context of these circumstances that the Commissioner of Income-tax (Appeals) and also the Income-tax Appellate Tribunal concurrently held that it is not in the nature of a trade and the profit earned thereby cannot be under the head “Business” and it has to be under the head “Capital gains.” – Order of CIT(A) and ITAT maintained – appeal dismissed.
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