TMI Blog2017 (9) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... re in the nature of trade” because there has to be at first a transaction in the nature of purchase or sale resulting in a gain or profit. On the contrary, there has been no such transaction/ and thus there is no gain or profit. In the absence of these two important ingredients it cannot be said that there has been taxable income. Thus we are of the considered view that Ld. CIT(A) has rightly deleted the addition on account of impugned receipt of security deposit as income of the assessee as Adventure in the nature of trade, which does not need any interference on our part, hence, we uphold the order of the Ld. CIT(A) on the issue in dispute and reject the ground in dispute raised by the Revenue. - I.T.A. Nos.776 And 777/DEL/2013 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 Kanal 11 Marla and in Ghamraj 64 Kanal 15 maria aggregating to 176 kanal 42 maria (which is 22 acre 2 kanal 2 maria) and which translates to 22.2625 Acres. These lands are contiguous to each other. This land along with land of other family members was given on lease to one company namely M/s. Progressive Building Estate Private Limited (Hereinafter Progressive ) which had 50% shareholding of Khushalani family arid the balance 50% of Uppal Housing Limited. Progressive have PAN AAECP7966P and assessed at Ward No. 5(2), New Delhi. Progressive was incorporated for the purposes of development of IT/ITES Special Economic Zone, which was to' be the responsibility of Uppal Housing Limited, advanced a sum of ₹ 6,42,25,228/- as security ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order, assessee appealed before the Ld. CIT(A)-VI, New Delhi, who vide his impugned order dated 01.11.2012 has allowed the appeal of the Ld. CIT(A)-VI, New Delhi. Aggrieved with the order of the Ld. CIT(A), the Revenue is in appeal before the Tribunal. 4. Ld. DR relied upon the Order of the AO and reiterated the contentions raised in the grounds of appeal. 5. On the contrary, Ld. Counsel of the assessee has relied upon the order of the Ld. CIT(A) and stated he has passed a well reasoned order which does not need any interference. During the hearing, Ld. Counsel of the assessee has filed a small Paper Book containing pages 1 to 65 in which he has attached the copy of submission filed before CIT(A) in regard to addition on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.03.2008 for ₹ 1,11,350/- per annum. Apart from it, the assessee also received security deposit from M/s. Progressive against the land given on lease amounting to ₹ 6,42,25,228/-. The approval for creation of IT/ITES Special Zone was obtained on 17.11.2008. As per the agreement, on receipt of the approval the assessee was to sell his share of land for ₹ 56.7488 crore. However, no further transaction took place among the parties after obtaining approval for setting up of IT/ITES Special Zone. There is no evidence on record to show that any land was ever transferred by the assessee or any other member of the family by an agreement to sell or a sale deed. The assessee continued to own the land and had not sold or executed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category adventure in the nature of trade. This logic is perverse because in this case no change regarding the ownership rights on land has taken place. The Company has not acted upon after the receipt of the approval for SEZ Notification. No action has been taken by the company for development of land let alone any action of allotment of plots and shops/stalls as observed by the AO. For carrying out business of purchase and sale of land/plots etc., the company has to first acquire the land from the assessee by purchasing and then it has to develop the land and sell/allot plots and shops. Nothing has been done by the company or the assessee to come to a conclusion that an activity has been undertaken which activity has resulted in a profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing out of adventure in the nature of trade . The fact that the company M/s. Progressive wanted to acquire the land from the assessee, develop it and then sell proves that the business if at all would be done by the company M/s. Progressive, and by no stretch of imagination can assessee be doing business, because the assessee was to merely sell the land which was purchased in the year 1991-92 and 1992-93, which would have resulted in a capital gain. We further find that it has been held by the Hon'ble Apex Court in the case of Lahore Electric Supply 60 ITR 1 (SC) that Business as contemplated in section 28 is an activity capable of producing profit which can be taxed. Ordinarily, the expression business connotes a continuous activit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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