Land sale income treated as capital gains, not business income. Tribunal decision upheld. Revenue appeal dismissed.

The court determined that income from the sale of land should be classified as capital gains rather than business income. The respondent company held the land as an investment for 10 years without development, leading to the profit being taxable under capital gains. The Tribunal's decision was upheld as the revenue did not challenge the factual findings. The appeal by the revenue was dismissed, and no costs were awarded.

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Issues involved: Determination of whether income from the sale of land should be treated as business income or capital gains.

The judgment addresses the question of law regarding the classification of income arising from the sale of land as either business income or capital gains. The dispute revolves around whether the land should be considered as stock in trade or as an investment. The CIT(A) and the Tribunal found that the respondent company treated the land as an investment in its books of accounts, held the land for 10 years without taking steps for development, and thus, the profit from the sale should be taxable under the head of capital gains.

The Tribunal's decision, based on the concurrent findings of fact by the CIT(A) and the Tribunal, did not give rise to any legal question. The revenue did not argue that these findings were incorrect or unreasonable. Therefore, the appeal by the revenue was dismissed, and no costs were awarded.

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