Assessee is  engaged in business of real estate development and leasing of properties. It had been consistently declaring rental income from letting out of properties as income from house property and income from sale of properties as capital gains.  The Assessing Officer assessed rental receipts under head business income and consequently, income received by assessee on sale of property was also assessed as business income and not as capital gains as declared by assessee.  CIT(A) allowed the appeal of the assessee. On appeal the Tribunal  initially dismissed the appeal of the Revenue and thereafter recalled the order. By a common order allowed the appeal of the Revenue. On appeal the Court held that  merely for reason that in said assessment years, assessee effected a sale of some of its properties, it could not be seen as having embarked upon a business of buying and selling properties in those years, even if it was authorized to do such business as per its Memorandum of Association. Sale transactions could not have effect of changing very nature of income earning activity consistently carried on by assessee, and accepted by department-Therefore, income derived by assessee, from sale of properties owned by it, during two years under consideration in these appeals, could only be assessed under head of capital gains and not as business income.  (AY. 2012-13 & 2015-16)