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2020 (11) TMI 205 - AT - Income TaxRights on property or gain/losses - co-ownership agreement made between the assessee’s brother and relative - HELD THAT:- Land in question was purchased by the assessee along with co-owners in pursuance to the deed of co-ownership entered into by the assessee with other 2 co-owners Shri. N. Srinivasan and K. N. Ramesh. From copy of this co-ownership agreement it is stated that the nature of business will be joint purchase of the land. In co-ownership agreement, it is also stated that the net income of the co-ownership after deduction of all expenses shall be shared by the co-owners in accordance with this deed of co-ownership. When this is admitted position that the purchase of the land in question in the month of September 2005 was in pursuance to this co-ownership agreement entered into in June 2002 and as per this co-ownership agreement, this is the business of this co-ownership to have joint purchase of land and the net income of the co-ownership after deduction of all expenses is to be shared by the co-owners in accordance with the manner provided in the co-ownership agreement, nothing further is required to be seen and it can concluded without any hesitation that the income arising on purchase and sale of land in pursuance to this co-ownership agreement is taxable as business income and this is not relevant as to whether any other activity was done by the co-owners on the land purchased or in any other manner. As per the co-ownership agreement executed on 15.06.2002, the nature of business of this co-ownership arrangement is to have joint purchase of land and the income arising to this co-ownership after deduction of all expenses has to be shared by the co-owners in accordance with this deed of co-ownership and therefore, we hold that there is not infirmity in the order of CIT(A) and hence, no intervention is called for in the order of CIT(A). - Decided against assessee.
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