2016 (7) TMI 1268

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....ng of an amount of Rs. 24,13,24,783/- received in respect of the sale of land acquired in the year 2003 by way of capital investment for the construction of the Showroom cum Workshop of the appellant as business income by treating the same as an Adventure in the nature of trade instead of taxing the same as shown and declared in I.T.R. filed as an "income from Long-term Capital Gains at Rs. 22,78,50,090/- after deducting the Indexed Cost 7 Indexed Cost of Improvement aggregating to Rs. 2,44,01,910/- from sale consideration of Rs. 25,22,52,000/-. It is submitted that having regard to the facts and judicial decisions, the amount of Rs. 22,78,50,090 be taxed as Long-term Capital Gains and that the addition of Rs. 24,13,24,783/- made as Busines....

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....l Darwaja, Ahmedabad 5. The principal insisted for the expansion of the dealership on the part of the assessee. The assessee company resolved for purchase of land at S.G. Highway vide resolution dated 03.11.2003 and purchased land vide Sale Deed dated 01.12.2003 and 12.12.2003. The lands were purchased in the name of the Director Shri Jahangir Rusotm Cama, the total area of two adjoining plots so purchased were at 8572 sq. mtr. for a consideration of Rs. 95,92,500/-. Since, the lands were for agriculture purpose and assessee intended to start a show room /work shop for MBIPL, it applied for NA permission on 06.12.2005 and the same was granted on 18.03.2006. Subsequently, Development Permission from AUDA was taken on 15.06.2006. 6. However....

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....nce again completely ignored the fact that if the assessee intended to use the impugned land as show room/work shop, it had to apply for NA otherwise it could not have submitted its plan to AUDA for approval. The intention of the assessee for applying the use of land for NA is clearly established from the fact that the AUDA approved its plan for establishing a show room/work shop at the impugned land. Moreover, the assessee has been consistently showing the said piece of land as a capital asset in its block of assets in the balance sheet. The revenue authorities have simply dismissed the contentions of the assessee without bringing any corroborative evidence on record. If, the revenue alleges that the transaction was an adventure in the nat....