2015 (4) TMI 1280

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....iness income as held by the AO. 2. Brief facts of the case are that the assessee, an individual had filed his return of income for A.Y 2005-06 on 23.12.2005 declaring a total income of Rs. 16,03,986. The assessee had offered capital gains of Rs. 1,24,30,548 on sale of land situated at Nallagandla Village and claimed exemption u/s 54EC of Rs. 1,24,30,548 by investing Rs. 1,25,00,000 in NABARD bonds.  The return was processed u/s 143(1) of the I.T. Act. Subsequently, on the basis of the assessment order for A.Y 2006- 07, AO formed an opinion that assessee's income has escaped assessment for the relevant A.Y. Therefore, notice u/s 148 was issued and during the assessment proceedings u/s 143(3) r.w.s. 147 of the Act, the AO has observed....

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....ies relied upon by the parties before us. It is not always easy to describe what are the circumstances that render a transaction as an 'adventure in the nature of trade'. In dealing with the question, the Hon'ble Supreme Court in G. Venkataswamy Naidu & Co (supra) observed that no principle can be evolved which would govern the decision of all cases in which the character of such a transaction falls to be considered. Sec. 2(13) of the IT Act defines business as including any adventure in the nature of trade, commerce or manufacture. With reference to this definition, the Hon'ble Supreme Court observed that when the section refers to an adventure in the nature of trade, "it is obviously referring to transactions which individ....

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....the commodity to make it more readily saleable ? Here it could be safely stated that Assessee has not obtained any permission from the authorities for developing residential plots as the application was made by Assessee's mother and Assessee has simply inherited the land, which is under the process of development as the development agreement was also entered by his mother, therefore, improving the quality of commodity was not done by Assessee, but, by his mother in whose case also, it cannot be considered that she had intended to trade on the land and only for better price realization she had applied for HUDA permission. Incidentally, the approval came much later and Assessee inherited the property after the death of his mother that doe....