TMI Blog2015 (11) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... ently, the question is answered in the negative i.e. in favour of the Assessee and against the Revenue - ITA 299/2003 - - - Dated:- 17-11-2015 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellant : Mr Rajat Navet, Advocate with Mr Kushagra Pandit, Advocate For the Respondent : Ms Suruchi Aggarwal, Senior Standing Counsel with Ms Lakshmi Gurung, Junior Standing Counsel with Ms Radhika Gupta, Advocate ORDER S. Muralidhar, J: 1. This is an appeal by the Assessee against the order dated 20th March, 2003 passed by the Income Tax Appellate Tribunal ( ITAT ) in ITA No. 3626/D/98 for the Assessment Year 1993-94. 2. While admitting this appeal on 12th November, 2003, the following question was framed the Court for con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e flats from her share in the property to close family friends. In the return filed for the AY 1993-94 she declared ₹ 11,55,802/- as long term capital gain in terms of Section 54 F (3) of the Act. It is not in dispute that she paid the long term capital gains tax computed on the above basis. 7. The return was picked up for scrutiny and on 18th March, 1996 the Assessing Officer (AO) passed an assessment order in which, after setting out the clauses of the agreement entered into with the Builder, the AO concluded that the agreement was in the nature of adventure for trade on the property . The AO proceeded to treat the sum received by the Assessee pursuant to the agreement for sale dated 27th May, 1992 not as long term capital gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed to determine if it was in the nature of trade. 13. On more or less similar facts, this Court held in favour of the Assessee in Commissioner of Income Tax v R.V. Gupta [2002]261 (Del). In that case the Assessee was a senior IAS officer and was allotted a plot of land admeasuring 664 sq. m by the Delhi Development Authority (DDA) in a group housing society in New Delhi. The Assessee constructed six flats on the said plot and for meeting cost of construction he and his brother entered into agreement to sell with friends in respect of four of them and retained the remaining two for their own use. The question was whether the transaction was an adventure in the nature of trade and therefore the profits accruing therefrom were to be taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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