Case Law Details
ITO Vs Suresh Babu Vasireddy (ITAT Hyderabad)
The assessee is basically engaged in the business as a real estate agent in Hyderabad deriving commission income. The modus operandi of the business activity is that of identifying properties for sale in Hyderabad and simultaneously identify the interested buyers and sell the properties with a marginal profit. Further, the assessee is also engaged in sourcing properties for commercial lease to derive commission income. The assessee sold a property for a consideration of Rs. 4,52,40,000/-,which was purchased by him at Rs. 1,60,00,000/-. The said consideration was treated by the AO as short term capital gains on the ground that the assessee has failed to produce any corroborative evidence in support of that he is engaged in the business of executing real estate transactions and getting commission income. The CIT(A) directed the AO to treat the sale consideration received by the assessee on the sale of property under the head business income for giving detailed findings cited supra. Therefore, we do not find any infirmity in the order of the CIT(A) in directing the AO to treat the transaction of sale and purchase of property should be taxed under the head business income and upholding the order of CIT(A), we dismiss the grounds raised by the revenue on this issue.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal filed by the Revenue is directed against CIT(A) – 5, Hyderabad’s order dated 25/07/2018 for AY 2010-11 involving proceedings u/s 143(3) rws 147 of the Income Tax Act, 1961 in short “the Act” on the following grounds:
“1. The learned CIT(A) has erred both in law and on facts of the case.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
nice information you shared