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2015 (5) TMI 123 - MADRAS HIGH COURT

2015 (5) TMI 123 - MADRAS HIGH COURT - TMI - Income from the property transaction - business income or capital gains - Revenue contented that merely because the assessee was a student, the Tribunal ought not to have come to the conclusion that she could not have indulged in any business activity - Held that:- A careful look at the order of the Tribunal would show that the assessee got the property by way of settlement. Thereafter, she entered into a promoter's agreement on 18.12.2007 and a c .....

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nt year 2008-09 onwards and what is important is that the Revenue accepted the stand of the assessee. Therefore, it was clearly a case of change of opinion and it is now well settled that on the basis of the change of opinion, the power under Section 143(3) cannot be invoked.

The assessee did not acquire any land for the purpose of development and sale as part of any business venture. She got this property by way of a settlement and she merely wanted to sell it. The better method of s .....

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NT Judgment was delivered by V. Ramasubramanian,J This tax case appeal is filed by the Revenue questioning the correctness of the order passed by the Income Tax Appellate Tribunal. 2. Heard Mr.S.Rajesh, learned counsel for the appellant. 3. The assessee, who is the respondent, is an individual. She filed a return of income for the assessment year 2009-2010 on 31.7.2009, admitting a total income of ₹ 1,04,880/-. Later, the case was taken up for scrutiny. After verifying the books of account .....

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siness income. The assessee filed objections. However, the Commissioner of Income Tax considered the objections, set aside the assessment and directed the Assessing Officer to treat the income from the property transaction as business income instead of capital gains. 5. As against the said order of the Commissioner of Income Tax dated 7.2.2014, the assessee filed an appeal in I.T.A.No.1081/Mds/2014 before the Income Tax Appellate Tribunal. The Tribunal, by order dated 5.9.2014, allowed the appea .....

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ntended that whenever a property acquired by someone is sold in bits and pieces, after collecting the development charges with a view to make a profit out of the same, the same can be treated as business income as per the law laid down by the Supreme Court in Raja Rameshwara Rao Bahadur Vs. CIT [1961 (42) ITR 179 (SC]. 7. We have carefully considered the above submissions. 8. It is not as though the Tribunal merely went by the fact that the assessee was a full time student undergoing MBBS course .....

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