Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 383 - HC - Income TaxSale of land - “business income” OR “capital gain” - Assessing Officer considered the profit of such sale as “business income” - Held that:- From the impugned orders, it appears that the land had been purchased by the assessee in course of his real estate business and after purchasing the said land within a period of about six months, it entered into an agreement with M/s. Karani Builders on 3.1.1997 for development, sale of land and constructed building thereon. It is also a finding arrived at by the Tribunal that in terms of the said agreement between the assessee-builder and M/s.Karani Builder, the assessee was entitled to get its share in the business apart from separate value for the land. Therefore, we are in complete agreement with the finding of the Tribunal in the present matters treating the land as “stock in trade” as established from the agreement entered into between the assessee-builder and M/s.Karani Builder. The land had been purchased by the assessee-builder who was engaged in real estate business and in terms of the agreement entered into between assessee & M/s.Karani Builders, the latter was doing construction and transfer of the property on behalf of the assessee.
|