Gain from Land Held as Investment Rightly Treated as Capital Gain, Not Business Income: ITAT Jodhpur

ACIT Vs Mukesh Shah (ITAT Jodhpur) Conclusion: Assessee had consistently shown the plots as investments in earlier years and that the nature of income could not be determined solely based on the nature of the business for tax audit purposes. Accordingly the sale of these properties was rightly considered as sale of capital assets rather than stock in trade. Held: Assessee had claimed Short Term Capital Gain of Rs. 17,19,605/- on account of sale of immovable properties. AO considering the fact that assessee engaged in the business of real estate developer, was asked to explain why the income fr...