Mere Collaboration agreement with Builder & subsequent receipt of Property and Sale cannot be termed as business

The facts of the case are that the Assessee, (who died during the pendency of this appeal and is substituted by her legal representatives) was a housewife, having no source of income other than the pension of her deceased husband. The Assessee was the owner of property No. F-23, Hauz Khas, New Delhi wherein she was residing since 1956.  The Assessee entered into an agreement with M/s Exclusive Properties (hereinafter ‘the Builder’) on 27th May, 1991 to construct flats on 985 sq. yards of land on her property. In terms of the said agreement the Builder was to develop and construct ...