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2020 (4) TMI 761 - HC - Income TaxCorrect head of income - gain on sale of building - ‘long term capital gains’ or ‘business income’ - HELD THAT:- Except last nine years, the property which comprises land and building was let out by the assessee for a long period. The assessee had earned income by way of rent and rental income so received by the assessee was offered for taxation as income from the house property. The assessee has shown the property in question as capital asset in its balance sheet - there is no material on record to hold that the aforesaid property was converted by the assessee as an item of stock in trade. On the other hand, the said property was treated as capital asset. It has further been held that merely because the assessee is engaged in the construction business is not a ground that land and building should be treated as part of stock in trade. It is also pertinent to note that the assessee has not claimed any depreciation in any of the Assessment Years while offering rental income as house property income. Thus, the income from the sale of property has been treated as long term capital gain. The aforesaid finding of fact is based on meticulous appreciation of evidence on record and in substance is a finding of fact. - Decided in favour of assessee.
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