2025 (6) TMI 1945

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....arning a living as an astrologer. The original return of income was filed on 2.8.2007 reporting a total income of Rs. 17,98,611/-. A search under Section 132 of the Act was conducted on 23.8.2007. Following this, an assessment dated 14.12.2009 was made under Section 153A read with Section 144 of the Act, which determined the total income of Rs. 11,90,90,658/-. Assessee carried the matter in appeal to the Commissioner of Income Tax (Appeals) (CIT(A)), who dismissed the appeal and confirmed the finding of the Assessing Officer. Assailing the said order, assessee preferred an appeal before the ITAT, which by order dated 18.12.2015, set aside the assessment order and remanded the matter for fresh adjudication. 3. A fresh assessment order dat....

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....erred in holding that the transaction cannot be considered as 'adventure in the nature of trade' without considering the Supreme Court decision in the case of G.Venkatswamy Naidu v. CIT (1959) 35 ITR 594 in which it is held that even an isolated and single transaction may be of an adventure in nature of trade if some of essential features of trade are present in such a transaction and in the instant case the intention to make profit is very much evident? (5) Whether the ITAT erred in law in not considering that abnormally high sale consideration is also a factor determinative of the issue whether the land is agricultural or not as held by the Supreme Court in the case of Sarifabibi Mohammed Ibrahim and others v. CIT (1993) ....

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....cent lands were used would not be a ground to come to a conclusion that assessee's land was not agricultural in nature. 7. Assessing Officer rejected the submissions and held that the land was purchased with an intention to resell and after elaborately discussing the so-called business potential of the area where the land was situated went on to hold that the entire transaction was to be regarded as an adventure in the nature of trade and, therefore, assessed the income for assessment year 2007-2008 as business income. The claim of exemption of long-term capital gain was also rejected and profit on sale of land was brought to tax as business income. Agricultural income of Rs. 4.25 lakh, as reflected by assessee, was also brought to t....