Held that the assessee constructed a commercial building with the intention to let it out and disclosed it as a capital asset in returns; however, due to prolonged vacancy and financial strain, sold it after six years of holding, which was a forced sale, not a planned business venture. Profit from sale was assessable as capital gains, and an exemption under section 54EC was allowable. (AY. 2014-15)
Basavaraju Shivakumar Holavanahalli. v. ACIT (2025) 215 ITD 316 (Bang) (Trib.)
S. 45: Capital gains-Sale of property-Commercial building-Capital asset-Intention to let out-Constructed and sold over six years-Assessable as capital gains and not as business income-Exemption under section 54EC was allowable.[. S.2(14), 28(i), 54EC]
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