| |
| The Tax Publishers2020 TaxPub(DT) 4395 (Ahd-Trib) INCOME TAX ACT, 1961
Section 14
Balance-sheet filed by assessee over years,w ealth tax returns filed by assessee, adequacy of its own capital clearly underscore intention of assessee to hold land/properties as capital asset as claimed. There was a considerable time lag between purchase and sale of land and other properties. Accordingly, land/properties were held by assessee as capital asset before its sale and consequential gain arising on sale thereto was chargeable under the head of 'Capital gains'.
|
Head of income - Business income or Capital gains - Profit on sale of land -
Assessee declared profit on sale of land under the head capital gains. AO took the view that assessee was carrying on a systematic activity of purchasing and selling of lands which was in the nature of business and accordingly, AO taxed income declared by assessee under the head business and profession.Held: Balance-sheet filed by assessee over years,w ealth tax returns filed by assessee, adequacy of its own capital clearly underscore intention of assessee to hold land/properties as capital asset as claimed. There was a considerable time lag between purchase and sale of land and other properties. Accordingly, land/properties were held by assessee as capital asset before its sale and consequential gain arising on sale thereto was chargeable under the head of 'capital gains'.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 68
 SUBSCRIBE FOR FULL CONTENT
|