TMI Blog2015 (3) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... liable only to be assessed under capital gains - Decided in favour of assessee. - Tax Case (Appeal) No. 1052 of 2007 - - - Dated:- 25-2-2015 - R. Sudhakar And R. Karuppiah,JJ. For the Appellant : Mr. J. Narayanasamy Standing Counsel for Income Tax For the Respondent : :Mr. R. Vijayaraghavan for M/s. Subbaraya Aiyar Padmanabhan ORDER (Judgment of the Court was delivered by R. Sudhakar,J.) This Tax Case (Appeal) filed by the Revenue as against the order of the Income Tax Appellate Tribunal was admitted by this Court on the following substantial questions of law: 1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the gains arising from sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohammed Mohideen reported in 176 ITR 393, came to conclusion as follows: 4. The next issue relates to the income from real estate businesses and disallowance of expenditure under this head. It was observed by the Assessing Officer that the assessee had purchased 1.35 acress of land on 11.02.2003 for ₹ 1,12,000/-. This plot of land was developed and carved into plots for housing and assessee had sold 21 such plots for a sum of ₹ 19,52,390/-. The appellant had claimed that this profit is a long term capital gains. The appellant relied on the decisions of CIT Vs. M.L.M.Mahalingam Chettiar (deceased) (1977) 107 ITR 236, CIT Vs. Sairam 242 ITR 104, CIT Vs. Nathalal Dhayabhai 126 ITR 555, CIT Vs.Dhananjay Roy Jadhav 137 CTR (MP) 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Court in the case of CIT V. Mohammed Mohideen reported in 176 ITR 393, held the issue in favour of the assessee. 5. Aggrieved by the order of the Tribunal, the Revenue is before this Court. 6. Heard learned Standing Counsel appearing for the Revenue and the learned counsel appearing for the assessee and perused the materials placed before this Court. 7. We find that neither in the assessment order nor in the order of the Commissioner of Income Tax (Appeals) there is any material to show that the assessee is engaged continuously in the business of purchasing and selling of land with or without development, as has been observed by the Commissioner of Income Tax (Appeals) in paragraph 4 of the order, which we extracted supra. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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