Assessee, an association of persons (AOP), purchased a property-Assessee got permission to do construction on said property and later sold it.\u00a0 Members of assessee-AOP, in their return, offered consideration received from sale of said property as capital gains.\u00a0 Assessing Officer held that investment in said property, from very beginning was an adventure in form of business activity by assessee-AOP and, thus, income from its sale is\u00a0\u00a0 assessable as business income. CIT (A) deleted the\u00a0 addition as business income. On appeal the Tribunal held that the\u00a0 buyers were identifiable and, thus, whole purpose of purchase and subsequent construction was for purpose of selling same and not earning any rental income. Mere fact that assessee-AOP purchased land and made construction thereon itself would not be sufficient to hold that income earned on sale of such property would qualify as business income.\u00a0 Income from sale of property would be taxable as capital gains and not business income. AY. 2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains-Business income-Mere fact that assessee-AOP purchased and made construction thereon itself would not be sufficient to hold that income earned on such sale of property would qualify as business income and same would be taxable as capital gains. [S. 2(31)(v), 28(i)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43238","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bfo","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43238"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43238\/revisions"}],"predecessor-version":[{"id":43239,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43238\/revisions\/43239"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}