Case Law Details
Smt. Anita Singh Vs ACIT (ITAT Indore)
in the year 2006 itself the assessee along with other persons initiated the process of developing a colony which is proved by the Registration No.40/2006 issued on 21.8.2006. Few months before and the period thereafter all these 18 persons kept on purchasing the land from various land owners and parallely M/s. ADPL was working to develop the project named “Country Walk”. Once the area was developed then the sales were effected by demarcating them in various plots sizes and the ADPL was having the power of attorney to decide about the sale and development of the land bank. All the sale transactions were effected through it and the land owners used to get their share excluding the expenditure as well as excluding the portion of land which has been used for development. Through this process the assessee gained substantial amount which has been spread over to A.Y 2012-13 and 2013-14.
In our considered view as well as in the given factual matrix it is crystal clear that it was a well thought business project carried out by the assessee jointly with 17 other persons by way of taking the services of Developer M/s. ADPL and the intention of entering into an adventure of business was very clear from the very first day of purchase of impugned land and completed on selling the residential plots. We are of the considered view that both the lower authorities have rightly appreciated the facts and concluded that the profits from sale of land situated at Village Jhalaria, Tehsil Indore is a business profit and cannot be taxed as Short Term Capital Gain or Long Term Capital Gain. In the result these common issue raised for both the assessment years is decided against the assesse. We therefore dismiss all the grounds raised in both these appeals of the assessee.
FULL TEXT OF THE ITAT JUDGMENT
These two appeals filed by the assessee pertaining to A.Ys. 2012-13 & 2013-14 are directed against the order of Ld. Commissioner of Income Tax(Appeals)-I, Indore,(in short ‘CIT(A)’), vide appeal No. IT-752/14-15 &No.IT-23/2016-17 order dated 04.11.2015 &01.05.2017 which is arising out of the order u/s 143(3) of the Income Tax Act 1961(hereinafter called as the ‘Act’) framed on 28.01.2015 & 29.01.2016 by ACIT-3(1), Indore.
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