Case Law Details
ITO Vs Essjay Enterprises (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Delhi recently passed a significant judgment in the case of ITO Vs Essjay Enterprises. The ruling focused on the classification of income derived from the sale of agricultural land and shares.
Key Facts and Brief Background: The case originated from an assessment order for the financial year 2008-09, made under section 144 of the Income-tax Act, 1961. The Income Tax Officer (ITO) initially treated the profit from the sale of agricultural land and shares as business income. However, the Commissioner of Income Tax (Appeals) [CIT(A)] contradicted this by deleting the additions, treating these as capital gains.
Ground 1: Sale of Agricultural Land: The first ground raised by the Revenue was the CIT(A)’s deletion of the addition of Rs. 9,64,47,552, treating it as capital gain on the sale of stock of agricultural land. The ITAT upheld the CIT(A)’s decision, based on a remand report and evidence under rule 46A of the Income-tax Rules, 1962.
Key Points
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