TMI Blog2011 (3) TMI 1821X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER DR. O. K. NARAYANAN, VICE PRESIDENT : This appeal is filed by the assessee. The relevant assessment year is 2006-07. The appeal is directed against the order of Commissioner of Income-tax(A)-II, at Bangalore, dated.12.03.2010 and arises out of assessment completed u/s.143(3) of the IT Act, 1961. 02. The assessee had returned an income of ₹ .1,30,14,773/- for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal. After considering the facts of the case and examining a number of decisions pronounced by courts of law, the Commissioner of Income-tax(A) agreed with the assessing authority and held that the assessing authority has rightly treated the income as business income. The first appeal was dismissed. 04. We heard Smt. Sheetal Borkar, Advocate appearing for the assessee and Shri.Manoj Kumar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venture in the nature of trade or to purchase land as investment and sale at the appropriate favourable time. 07. In page 13 of his order, the Commissioner of Income-tax(A) has listed out the details of various purchases made by the late assessee from 1988-89 to 2003-04. The land was sold in financial year 2005- 06 which is the previous year relevant to the assessment year under appeal. The mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and plotted and sold at a huge price, does not mean that the assessee was carrying on the activities in an organized manner in the nature of business. As a prudent investor, the assessee started saving his investments in land in anticipation of good price on sale. This prudence of the late assessee cannot be equated with an object of indulging in adventure in the nature of trade. Because of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that there is no reason on record to reject the claim of the assessee that the surplus earned by the late assessee was in the nature of long-term capital gains. Accordingly, the assessing authority is directed to redo the assessment treating the surplus on sale of land as long-term capital gains in accordance with law including the benefit of indexation and determine the ultimate total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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