2014 (5) TMI 6

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....is return of income for AY 2007-08 on 31.10.2007 declaring total income of Rs.2,83,434/-. The case was selected for scrutiny and thereafter the assessment was framed u/s 143(3) vide order dated 24.12.2009 and the total income was determined at Rs. 21,51,360/-. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) vide order dated 3.7.2010 granted substantial relief to the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal before us and has raised the following grounds:- l(i) On the facts and in the circumstances of the case and in law, the Ld. C1T(A) erred in allowing the income of Rs. 17,34,758/- on account of sale of land as Long Term Capital Gain instead of business income. l(ii) The C1T....

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....ne flat in the building. The income received on sale of plot was considered as capital gain by the assessee. AO was of the view that the since the assessee had undertaken the development and construction activity, the income cannot be considered as capital gain but has to be treated as business income. He accordingly treated the entire profit of Rs 17,34,758/- received by the assessee as business income. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) deleted the addition made by A.O. by holding as under:- 4.3 I have considered the submission of the ld. A.R. and facts of the case and find that the plots sold by the appellant during the year are inherited by him from his late father in the year 1979. The n....

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....ins. Accordingly, the Assessing Officer is directed to treat the income from sale of land /plots during the year amounting to Rs. 17,34,758/-as income from sale of capital assets. The income from sale of capital asset being invested in the bonds as per the provisions of sec. 54EC, the chargeable capital gains in the case of the appellant would be nil. The appellant thus gets a relief of Rs. 17,34,758/-. 5. Aggrieved by the order of CIT(A), Revenue is now in appeal before us. Before us, Id DR took us through the order of A.O and supported the order of A.O. On the other hand Id AR supported the order of CIT(A). 6. We have heard the rival submissions and perused the material on record. We find that CIT(A) after considering the submission....