TMI Blog2013 (3) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 2(47)(v) read with section 53A of the Transfer of Property Act. None of these conditions are satisfied. Therefore, it is held that the property has not been transferred in this year - no question of law arises for consideration - in favour of assessee. Profits from the sale of lands - whether taxable under the head profits and gains of business or profession OR capital gain - Held that:- Tribunal returned a finding that in the present case, the land was purchased and was shown as an asset in the balance sheet and that the land had also been used for agricultural purposes. As the land had been held for a long period of time, the same having been purchased in 1994-96 there was no evidence that borrowed capital had been used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operties were purchased between 08.02.2005 and 25.08.2005. The total purchase price of these properties, which were situated in village Kapashera, came to Rs. 1,06,58,000/-. This land was sold in its entirety to one A.B. Tower Private Limited for a consideration of Rs 18 crores by virtue of a sale deed dated 04.09.2006, which falls in the succeeding year. However, an advance had been received of Rs. 5 crores during the year under consideration, i.e., the financial year ending 31.03.2006. The Assessing officer regarded the receipt of advance as finalization of the transaction and subjected the entire consideration amount of Rs. 18 crores (minus the cost price) to tax in this assessment year, i.e., assessment year 2006-07. 4. Consequently, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivered in this year. The twin conditions of execution of written agreement and handing over of the possession have to be cumulatively satisfied in order to bring the case within the ambit of section 2(47)(v) read with section 53A of the Transfer of Property Act. None of these conditions are satisfied. Therefore, it is held that the property has not been transferred in this year. It has also not been sold in this year. Since the transaction of transfer has not taken place in this year, nothing can be brought to tax as business income in this year. In this view of the matter, the money received is only an advance, which will get taxed as and when the transaction actually takes place. This happened in the immediately succeeding year. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bar on an assessee in undertaking, along with his business of sale-purchase of land, also an investment in land. In these circumstances, the Tribunal held that the assessee could very well be a trader in land as well as an investor in land simultaneously, depending on what his intention was and how he treated the asset in question. The Tribunal returned a finding that in the present case, the land was purchased and was shown as an asset in the balance sheet and that the land had also been used for agricultural purposes. It also noted the fact that the land had been held for a long period of time, the same having been purchased in 1994-96. The Tribunal was also conscious of the fact that there was no evidence that borrowed capital had been ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
