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2015 (8) TMI 986 - HC - Income TaxTransfer of two properties - capital gains v/s income from business - CIT (A) concluded that the two residential bungalows sold would result only in long term capital gain also confirmed by ITAT - Held that:- It is not possible to evolve a single test or formula which can be applied in determining whether the transaction was an adventure in the nature of trade. It was also noted that in the case of purchase and sale of land, generally speaking, the original intention of the party in purchasing the property, the magnitude of the transaction of purchase, the nature of the property, the length of its ownership and holding, the conduct and subsequent dealing of the assessee in respect of the property, the manner of its disposal and the frequency and multiplicity of transactions, afford valuable guides in determining whether the assessee is carrying on a trading activity and whether a particular transaction should be stamped with the character of a trading adventure. See CIT v. V.A.Trivedi (1987 (1) TMI 12 - BOMBAY High Court ) Tribunal, as a final fact finding authority has confirmed the findings of fact returned by the CIT (A). While doing so, it did not look at any solitary fact to determine as to whether the transactions in question resulted in capital gains or in business income. Several factors were considered, which included the intention of the assessee in purchasing the property, the length of time the property was kept by the assessee (which in this case is more than fifty years), the lack of any transactions of sale or purchase of property throughout this period of time etc. The CIT (A) as also the Tribunal have examined the case in the correct perspective - Decided in favour of assessee.
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