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TMI Blog2013 (7) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the fact that the nature of business of the assessee as mentioned in Co.No.8(a) of Audit Report in Form 3(1) that Purchase & sale of Agriculture implements, Seeds, Fertilizer, Pesticides for members, etc. Trading and Processing in Agricultural & Non-agricultural items for members and others and to render the saving bank facilities to its members? 2. Issue pertains to a sum of Rs.54.15 lakhs (rounded off), which the Tribunal directed the Assessing Officer to treat as business income and consequently to permit set off against the business losses. 3. Revenues stand is that the assessee was engaged in the business of purchase and sale of agricultural implements, seeds, fertilizers and pesticides for its members and in treating and proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining permission from District Registrar Co-operative societies, Himatnagar for construction of commercial complex, the assessee started the activity of developer and organizer in A.Y. 2006-07 pursuant to which it demolished its office (at Vijaynagar) and godown at Bhiloda) and constructed shops and sold the shops. The activity of the construction was started by the assessee to reduce the accumulated losses. The assessee developed shopping complex at Vijaynagar in A.Y.2006-07 and at Bhiloda during A.Y. 2007-08. The profit on sale of shops was reflected as business income and the sale of shops was considered as business income by the A.O. while framing order under Section 143(3). The fact that the assessee owned land and had carried forward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was also passed by the cooperative society before undertaking such an activity. The Tribunal noticed that the purpose of construction of the commercial complex and the sale of shops was done with the sole intention of engaging itself into a commercial activity and the construction and sale of shops was only with a view to earn profit to increase the revenue. The Tribunal recorded that the facts that the assessee owned the land and had also accumulated losses was not in dispute.
8. Such being the bundle of facts, in our opinion, the Tribunal committed no error in coming to the conclusion that the income in question should be treated as a business income. No question of law arises. Tax Appeal is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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