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2017 (3) TMI 878 - GUJARAT HIGH COURTSale consideration of land - capital gain OR business income - Held that:- It is required to be noted and it is not in dispute that the assessee was already having a dealership with the Mercedes Benz since 1997. That thereafter, the assessee purchased the land on S.G. Highway Road, Ahmedabad in the year 2003, which according to the assessee was insisted as per the requirement of Mercedes Benz and to continue dealership with the Mercedes Benz. That thereafter, assessee purchased the land on SG Highway Road on 1.12.2003 for sale consideration of ₹ 95,92,500/. That therefore, the assessee got the said land converted from agricultural to non agricultural use in the year 2005 and thereafter obtained necessary development permission from the AUDA (competent authority) for construction of the showroom etc. Thereafter the dispute arose between the assessee and Mercedes Benz and therefore, the dealership with the Mercedes Benz came to be discontinued in the year 2009. That thereafter, in the year 2011, the assessee sold the land and received the sale consideration which was claimed by it as a capital gain. Considering above it cannot be said that when the assessee purchased the land in the year 2003, the intention was to purchase the land to make profit by selling it. The aforesaid circumstances would suggest that the land was purchased for showroom etc. As such, the assessee hold the land for approximately 8 years and thereafter sold the same for the reasons stated herein above. When the learned Tribunal has held the income of ₹ 24,13,24,783/received by the sale of land as capital gain as claimed by the assessee and not as income from business as held by the AO confirmed by the learned CIT(A), it cannot be said that the learned Tribunal has committed any error
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