2015 (8) TMI 986

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....ed counsel for the Revenue before us was with regard to the decision of the Tribunal that the transfer of the two properties to Mr Niranjan Koirala and Ms Sheila Aggarwal was wrongly concluded by the Tribunal to result in capital gains and not income from business. 3. The facts of the case are that the assessee had purchased leasehold rights in a large parcel of land in 1952 with the object of dairy farming and for production of milk. That venture never took off because the requisite permission for the same was not given by the New Delhi Municipal Council. On 02.03.1989, the assessee entered into an MOU (Memorandum of Understanding) with Balarpur Industries Limited and Dalmia Promoters for developing a portion of the said land. According....

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.... properties to Mr Koirala and Ms Aggarwal, has resulted in capital gains or business income in the hands of the assessee. The Assessing Officer, by virtue of the assessment order dated 31.12.2008, held that the transaction resulted in business income and not in capital gains. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals). By an order dated 22.12.2010, the CIT (A) reversed the findings of the Assessing Officer. The CIT(A), after examining the case law, which was presented before him, and also facts of the case, came to the conclusion that the intention of the assessee, at the time of purchase of the property in 1952 was to establish a dairy farm in which it would produce milk. The said property was held as ....

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....le test or formula which can be applied in determining whether the transaction was an adventure in the nature of trade. It was also noted that in the case of purchase and sale of land, generally speaking, the original intention of the party in purchasing the property, the magnitude of the transaction of purchase, the nature of the property, the length of its ownership and holding, the conduct and subsequent dealing of the assessee in respect of the property, the manner of its disposal and the frequency and multiplicity of transactions, afford valuable guides in determining whether the assessee is carrying on a trading activity and whether a particular transaction should be stamped with the character of a trading adventure. 7. We are in a....