The Appellate Tribunal considered whether the sale proceeds of...

The Appellate Tribunal considered whether the sale proceeds of residential units should be treated as capital gains or business receipts. It was found that the transactions were part of a land transfer for development by a builder, not a business activity by the assessee. The long-term capital gain from the land transfer was eligible for exemption u/s 54F as the proceeds were reinvested in residential flats. Flats sold within 36 months attracted short-term capital gain, while those held longer qualified for long-term capital gain benefit u/s 54. The Tribunal upheld the decision that the transactions were capital gains, not business receipts, and dismissed the revenue's appeals. Additionally, the valuation report supported the assessee's investment in constructing Rupam Tower, showing no basis for the excessive addition by the Assessing Officer, leading to the deletion of the alleged unaccounted investment.