Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 861 - HC - Income TaxAssessment u/s 153A - Capital gain of sale of the land - assessee had purchased the property with an intention of reselling the same for profit - Held that:- The assessee was an employee with Syndicate Bank. He purchased a land measuring 2800 sq.ft., in the year 2001. He put up a construction of 12 apartments, out of which 8 apartments were sold and 4 apartments were retained for himself. The profits made out of sale of 8 apartments were offered as ‘short-term capital gains’ and the profits made on sale of the land was offered as ‘longterm capital gains’, after claiming exemption to an extent of ₹ 22,50,171/-. The Tribunal on considering the material on record, was of the view that since the assessee sold the flats for profit in the subsequent period, the said transaction does not tantamount to adventure in the nature of trade. When the assessee invests money in a property with an intention to hold it or enjoys the property and sells it for profit thereafter, then it is a case of capital appreciation and the profit derived there from is taxable under the head ‘capital gains’. Judgment of the Hon'ble Supreme Court in the case of G.VENKATASWAMY NAIDU VS. CO. VS. COMMISSIONER OF INCOME TAX [1958 (11) TMI 5 - SUPREME COURT] was followed. No substantial question of law
|