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Profit from sale of land acquired in course of business is “Business Income”

In M/s. Balaji Builders Vs Asst. Commissioner of Income Tax, Bhubaneswar, the division bench of the Orissa High Court ruled that where the appellant itself was in the business of purchasing and developing the land and also constructing houses thereon and selling the same and where within a
period of about six months, it entered into an agreement with another developer for development, sale of land and constructed building thereon, the profit from sale of such property is “business income” and not “capital gain”.

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