Kolkata Tribunal Confirms Rs. 2.97 Crore as Long Term Capital Gain, Not Business Income for AY 2006-07.

The ITAT Kolkata dismissed the revenue's appeal, affirming the CIT(A)'s order to treat the income of Rs. 2,97,68,343 as Long Term Capital Gain (LTCG) rather than income from business and profession for AY 2006-07. The Tribunal upheld the CIT(A)'s decision, finding no error and aligning with a previous ITAT order for AY 2005-06.

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Issues involved: Appeal against the order of the Commissioner of Income-tax (Appeals) treating income as Long term capital gain instead of income from business and profession for AY 2006-07.

Summary:
The Appellate Tribunal ITAT Kolkata heard the appeal filed by the revenue against the order of the Commissioner of Income-tax (Appeals) for the AY 2006-07. The revenue contended that the income of Rs.2,97,68,343 should be treated as income from business and profession instead of Long term capital gain, citing various court decisions. Both parties agreed that the issue was covered by an earlier ITAT order for the AY 2005-06. The Tribunal noted that the CIT(A) directed the Assessing Officer to accept the long term capital gain based on previous decisions and upheld the CIT(A)'s order. The Tribunal found no error in the CIT(A)'s decision and dismissed the departmental appeal, affirming the treatment of LTCG and STCG as claimed by the assessee.

This judgment was pronounced on 11-02-2011 by Hon'ble Sri D.K.Tyagi, JM & Hon'ble Sri C.D.Rao, AM.

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