Case Law Details
CIT Vs Kishan House Builders Association (Karnataka High Court)
The issue under consideration is whether the sale of land which is held as investment is considered as capital gains or business income?
High Court states that, from perusal of the entries it is evident that the assessee has not conducted any other activity other than holding the land as investment. It is also pertinent to mention here that the revenue has not come up with any documentary evidence to suggest that assessee had earned income from the transaction to the land in question. The Tribunal thereafter on the basis of meticulous appreciation of evidence on record has recorded a finding that assessee has rightly disclosed the income from the property as long term capital gains instead of business income. The aforesaid finding by no stretch of imagination can be believed to either perverse and arbitrary. In view of the preceding analysis, the substantial question of law framed by this Court are answered against the revenue and in favour of the assessee.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
These appeals under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’for short) have been filed by the Revenue which were admitted by the Bench of this Court by an order dated 18.01.2011 on the following substantial questions of law.
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