Return from a Development Agreement in favour of land owner is capital gain

CIT Vs Machino Techno Sales Ltd. (Calcutta High Court) Whether area sharing by the land owner is eligible to be treated as capital gains in a development agreement and not business income? The division bench of Calcutta high court in this case was considering appeal of department where the ITAT Kolkata benches held that the return which was received by the Respondent on account of area sharing of land was taxable as capital gains in view of the fact that the land was used as a capital asset for the purpose of its business and it continued to treat the asset as capital asset in its accounts. Th...