2017 (6) TMI 588

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.... Khan Reshma Nikhat against the order of CIT(A)-2, Aurangabad dated 11.02.2016 relating to assessment year 2010-11 passed under section 143(3) of the Income Tax Act, 1961 ( in short 'the Act'). 2. The assessee in ITA No. 1606/PUN/2014 has raised the following grounds of appeal:- 1. On the facts and circumstances of the case, Assessing Officer and CIT(A) erred in coming to the conclusion that income on transfer of property is assessable as capital gains and not as profits of business ignoring evidences on record and submission before them and their orders may be set aside and suitable relief granted. 2. The Assessing Officer and CIT(A) have held income as capital gains solely with the intention to invoke provision of section 50C of the....

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....al land at Aurangabad for total consideration of Rs. 17,00,000/-. The Stamp Valuation Authority had adopted the market value of the property at Rs. 68,25,000/ -. The assessee explained that the said land was purchased on 28.01.08 and was sold on 22.07.2009 and there was a short term capital loss of Rs. 2,320/- which was shown in capital account but not in the computation of income. The Assessing Officer show caused the assessee as to why the sale consideration should not be taken at Rs. 68,25,000/- under section 50C(1) of the Act and short term capital gain should be computed. The plea of the assessee before the Assessing Officer was that the said land sold by the assessee was its adventure in the nature of trade and hence, provisions of se....

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....n on property transactions and this particular land was purchased for subplotting and making building thereto. However, there was 'Nulla' on the said land because of which the said authority refused to allow sub-plotting of land and doing the business of Real Estate. The assessee along with others thus, decided to sell the property within short span of time. In the event exercise of the assessee was as adventure in the nature of trade, wherein the assessee along with others aimed to make some profit on the said land. However, because of the certain circumstances, the intention of the assessee to sub-plot the land and sell the said land by making profit could not be achieved and hence, loss in the transaction. 7. In view of the totality of ....