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2022 (4) TMI 354 - AT - Income TaxCorrect head of income - income declared by assessee under the head 'capital gains' or 'business income' on account of construction and sale of apartments - HELD THAT:- As in the case of PCIT vs. Smt. Chamundeswari,[2019 (1) TMI 861 - KARNATAKA HIGH COURT] wherein following the decision of Hon'ble Supreme Court in the case of G. Venkataswamy Naidu [1958 (11) TMI 5 - SUPREME COURT] held that property purchased with the intention of profit is business income but in case, assessee holds the property for a long period and investing in the property in an intention to hold and enjoy the property and sells it for capital appreciation, the profit deriving there from is taxable under the head 'capital gains'. The intention was to construct property, to hold property and to enjoy the property as the assessee was enjoying this property since 2003, as she was not having any other house property. The compulsion to the assessee for sale of this property was only that she was under heavy debt and to release the debt she has to sell the property and actually by selling these flats she has settled the loans and hence in the given facts, we cannot say that the assessee has entered into any trade or any case 'adventure in the nature of trade'. Hence, we reverse the orders of lower authorities and direct the AO to assess the profit arising out of sale as 'capital gains' and allow the appeal of the assessee.
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