https://www.taxtmi.com/caselaws?id=754819 ITAT Patna ruled that proceeds from sale of residential units received in exchange for land development constituted capital gains, not business receipts under section 28(iv). The assessee transferred land to developer for seven flats and later sold two units. The tribunal held this was a land transfer transaction, not business activity, as development was solely the builder's responsibility. Long-term capital gains were calculated based on fair market value, with section 54F exemption allowed for reinvestment. One flat sale qualified for short-term capital gains treatment, while another received long-term capital gains benefit under section 54. The tribunal also deleted additions for alleged undisclosed investment in construction, accepting registered valuer's cost estimate over AO's inflated assessment. en-us Thu, 27 Jun 2024 00:00:00 +0530 Sat, 29 Jun 2024 13:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754819 ITAT Patna ruled that proceeds from sale of residential units received in exchange for land development constituted capital gains, not business receipts under section 28(iv). The assessee transferred land to developer for seven flats and later sold two units. The tribunal held this was a land transfer transaction, not business activity, as development was solely the builder's responsibility. Long-term capital gains were calculated based on fair market value, with section 54F exemption allowed for reinvestment. One flat sale qualified for short-term capital gains treatment, while another received long-term capital gains benefit under section 54. The tribunal also deleted additions for alleged undisclosed investment in construction, accepting registered valuer's cost estimate over AO's inflated assessment. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754819