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2022 (3) TMI 1024 - AT - Income TaxRevision u/s 263 - Correct head of income - whether the profit on sale of plots was actually in the nature of capital gain or adventure in the nature of trade? - HELD THAT:- We observe that in assessment-order, as clearly stated that the assessee has made written submissions and filed not only the working of capital gain but also the purchase and sale deeds. AO has clearly mentioned in the assessment-order that he has perused those submissions and documents and thereafter accepted the long-term capital gain declared by the assessee. We also observe that during assessment proceedings, hearings were conducted from time to time and attended by the assessee and the assessment-order has not been passed in haste. It would have been better if the Ld. AO had made an elaborate discussion which he did not make, but still the assessment-order clearly transpires that the Ld. AO has perused the working of capital gain as well as the evidences of capital gain in the form of purchase and sale deeds and it is thereafter that he accepted the long-term capital gain. Thus, there is no lack of enquiry on the part of Ld. AO. As out of 42 plots allotted by Bhopal Development Authority, the assessee sold a few plots in the immediately preceding assessment-year 2014-15 and declared the profit arising therefrom as long-term capital gain, which stand accepted by Ld. AO and also not disturbed by Ld. PCIT in revision-proceedings of that year. As the assessee has sold 11 plots during the assessment-year 2015-16 under consideration out of the very same bunch of 42 plots, the nature of income being long-term capital gain as accepted by revenue in the assessment-year 2014-15 must be accepted in the assessment-year 2015-16 under consideration too. We are of the considered view that the Ld. PCIT was not justified in invoking section 263 to the present matter of assessee. - Decided in favour of assessee.
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