Land Sale Profits Treated as Capital Gains, Not Business Income: Madras HC

CIT Vs Gwl Properties Ltd (Madras High Court) The Madras High Court reaffirmed settled principles on classifying profits from land sales, holding that gains from the assessee’s sale of land Capital Gains versus Business Income: Substance of Holding, Intention and Conduct Prevail over Revenue Assumptions- Correct head of income – profit earned by the assessee on sale of land – ‘capital gains’ or ‘business profits’ – Circular No.4/2007 dated 15.06.2007 -a distinction between a “capital asset” and a “trading asset” The long-standing controversy...