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2015 (10) TMI 2469 - AT - Income TaxDetermination of rent at fair market value - Held that - Both the parties agreed that the same requires fresh examination at the end of the AO by duly considering the decision rendered by the Hon ble jurisdictional Bombay High Court in the case of Tip Top Typography (2014 (8) TMI 356 - BOMBAY HIGH COURT ). Accordingly we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine this issue afresh Assessment of gains arising on sale of plot as business income - Held that - We notice that the assessee has been holding various plots for quiet a reasonable time and hence he has declared long term capital gain on sale of two adjacent plots. We also notice that the assessee continues to hold other plots as his investments only. The long holding period in our view supports the case of the assessee. Further it is not shown to us that the assessee has been indulging in repetitive transactions of purchase and sale in plots. It was also not shown that the assessee has borrowed funds for the purpose of purchasing plots. Since the AO has not brought on record any valid reason to support his case we are of the view that the tax authorities are not justified in assessing the capital gain as his business income. Hence we are not able to agree with the view taken by the Ld CIT(A) on this issue. Accordingly we set aside the order of Ld CIT(A) on this issue and direct the AO to assess the profit arising on sale of plots as Capital gains.
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