Case Law Details
Mujib Salmanbhai Pathan Vs ACIT (ITAT Nagpur)
ITAT Nagpur held that the assessee is undoubtedly entitled to hold two different portfolios in respect of the same kind of asset i.e. stock in trade and investment. Since, the land was held as investment the same is assessable to tax under the head ‘capital gain’.
Facts- The appellant is an individual engaged in the business of builders and land developers. The assessment for the year under consideration was completed u/s 143(3) of the Income Tax Act, 1961. While doing so, the Assessing Officer made addition of Rs.1,00,85,013/- being the profits arising out of the sale of land, treating as an income from business as against the claim of the appellant that it is a nature of capital gains.
CIT(A) upheld the action of AO. Being aggrieved, the present appeal is filed.
Conclusion- In the present case, the land was sold after the gap of decade and there was no material to show that the appellant had acquired the land only with the intention to re-sell the land for profit. The assessee is undoubtedly entitled to hold two different portfolios in respect of the same kind of asset i.e. stock in trade and investment.
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