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2023 (2) TMI 53 - AT - Income TaxCorrect head of income - treatment of surplus fund out of the sale of properties - business income as treated by the Assessing Authority or the capital gain as claimed by the assessee - whether the Assessing Authority justified to treat the transaction under the different head of income? - HELD THAT:- The assessee claimed it as gain arising out of transfer of capital asset. On the other hand, the AO treated it as business receipts arising from real estate business. Assessee laid great stress on intent of the assessee. Considering the fact that the properties in quantum were held for considerable longer period of time, it is not the case where the properties have been sold within a short span of time after their acquisition. Coupled with the fact that the assessee is not engaged into any systematic real estate business activity. Thus hold that the authorities below erred in treating the transaction as real estate business transaction under the facts and circumstances of the present case - we hereby direct the AO to delete the impugned addition. Thus, grounds raised by the assessee are allowed.
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