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2018 (4) TMI 183 - ITAT MUMBAIIncome derived from sale of land - to be assessed under the head business or long term capital gain - whether the assessee is eligible for indexation benefit and deduction under section 54 of the Act? - Held that:- Reasonings on which the learned Commissioner (Appeals) has treated the land as business asset of the assessee are not at all relevant for deciding whether the land in question was held as investment or business asset. It appears from record, in assessment year 2006–07, the Assessing Officer had assessed the money received from Samir Bhojwani in pursuance to the development agreement in respect of the same land as income of the assessee. Though, the issue was set aside to the Assessing Officer by the Tribunal, however, it needs to be seen under which head the Assessing Officer treated it as income and the reason for doing so. In this regard, the Balance Sheets of earlier years are also required to be examined. Considering the overall facts and circumstances of the case, we are of the opinion that the issue whether the land in question was held as an investment or business asset requires to be examined afresh taking into consideration all material facts including the intention of the assessee at the time of purchase of land. Assessee’s appeal is allowed for statistical purposes.
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