Sale of Land: Not Business Income Without Trade Indicators – ITAT Ahmedabad

Shri Laxmanbhai Balchanddas Patel Vs PCIT (ITAT Ahmedabad) ITAT Ahmedabad held that treating transaction of sale of land as business income without any base which indicates that the transaction would be an adventure in the nature of trade is not justified. Hence, AO rightly treated sale of land as capital gain. Facts- PCIT invoked provisions of section 263 of the Income Tax Act alleging that AO had wrongly allowed assessee’s claim of profit earned from the sale of land as assessable under the head “Capital Gains” and consequently allowed deduction under Section 54EC of the A...