TMI Blog2020 (4) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee as an item of stock in trade. On the other hand, the said property was treated as capital asset. It has further been held that merely because the assessee is engaged in the construction business is not a ground that land and building should be treated as part of stock in trade. It is also pertinent to note that the assessee has not claimed any depreciation in any of the Assessment Years while offering rental income as house property income. Thus, the income from the sale of property has been treated as long term capital gain. The aforesaid finding of fact is based on meticulous appreciation of evidence on record and in substance is a finding of fact. - Decided in favour of assessee. - I.T.A. NO.457 OF 2010 - - - Dated:- 28-2- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held as stock in trade and the assessee itself was engaged in the business of construction of Multi Storied Building. The Assessing Officer bought an amount of ₹ 6 Crores under the head business income on substantive basis. Being aggrieved, the assessee filed an appeal. However, the Commissioner of Income Tax (Appeals) by impugned order dated 01.03.2010 upheld the order passed by the Assessing Officer. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal vide order dated 28.07.2010 inter alia held that the said property was shown as capital assets in books of account of the assessee and the rental income of the property in question was brought to tax under the head i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal has recorded the finding that the property was held as capital asset and therefore, the same cannot be treated as stock in trade. In support of his submissions, the learned counsel has placed reliance on division bench decision of this court in D.R.PUTTANNA SONS PVT. LTD. VS. COMMISSIONER OF INCOME-TAX , 1986 SCC ONLINE KAR 386. 5. We have considered the submissions made on both the sides and have perused the record. Except last nine years, the property which comprises land and building was let out by the assessee for a long period. The assessee had earned income by way of rent and rental income so received by the assessee was offered for taxation as income from the house property. The assessee has shown the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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