Assessee purchased land and put up residential housing plot scheme on said land while providing for common infrastructure and internal roads, such organized course of commercial exploitation of land etc. on sale of plot of lands the assessee offered the income as short term capital gains. AO assessed the income as business income. Order of the AO is affirmed by the CIT(A) and Tribunal. Followed P.M. Mohammed Meerakhan v. CIT [1969] 73 ITR 735 (SC) (AY. 2008 -09, 2009-10, 2010-11, 2011-12)
Bhanuben Kantibhai Savalia v. DCIT (2019) 179 ITD 710 (Ahd.) (Trib.)
S. 28(i) : Business income–Purchase of residential housing plot scheme–Providing for common infrastructure and internal road on the said land -Income arising from sale of plots of land is assessable as business income and not capital gains. [S. 2(13), 45]