9911796707
TMI Blog2025 (2) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... aised by the Revenue in appeal is with respect to income from sale of part of property No.99, Rajpur Road, Dehradun. The assessee has offered gain on sale of land under the head 'Capital Gains', whereas, the Revenue intends to tax the gain under the head 'Profits from business and Profession'. 3. The facts of the case as emanating from records are: The assessee is a partnership firm and is engaged in the business of real estate development. The assessee was having land/property no.99 Rajpur Road, Dehradun. The assessee had acquired said land in Financial Year 2008-09 and since the date of acquisition had shown land in the books as capital investments. During the period relevant to assessment year under appeal, the assessee had sold part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submitted that it is a well settled law that entries in the books of account does not determined true nature of the activities. He asserted that the CIT(A) has erred in placing too much reliance on the books of assessee to determine nature of transaction. The CIT(A) has accepted contention of the assessee without looking at facts evident from the records. 5. Per contra, Shri Rajiv Sahni appearing on behalf of the assessee submits that the assessee had acquired land in Financial Year 2008-09 and right from the beginning intention of the assessee was to hold the land as capital investment. In support of his submissions, he referred to Balance Sheet as on 31.03.2009 at page no. 34 of the paper book, wherein Land is reflected under the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard the submissions made by rival sides and have examined the orders of authorities below. The short issue in present appeal by the Revenue is, Whether the income earned by the assessee from sale of shops which are part of property situated at 99 Rajpur Road, Dehradun is taxable under the head 'Capital Gains' or 'Business of Income'. 7. The assessee has offered gain on sale of shops as Long Term Capital Gain, whereas, the AO has re-characterized gain on sale of shops as Business Income. It is an undisputed fact that the assessee had acquired property at 99, Rajpur Road, Dehradun during Financial Year 2008-09 and since then the assessee has held the same as investment. This fact is evident from Balance Sheets for the Financial Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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