Cause Title : Commissioner Of Income Tax, Kolkata Iv, Kolkata Vs. M/s. Machino Techno Sales Ltd., ITA/160/2011, Calcutta High Court
Date of Judgment/Order : 20/02/2023
Corum : The Hon’ble Justices T.s. Sivagnanam And Hiranmay Bhattacharyya
Citied:
Background
Some lands were purchased by the assessee during 1985/1990 and the said land and factory shed was used by the assessee as its workshop and was shown as capital asset in its balance-sheet. The purchase prices were debited by the assessee under the head ‘land account’. On 13th November, 1994 the assessee entered into a development agreement with the developer under which the assessee in exchange of the land in question was entitled to get 45% of the constructed area and the remaining portion of the land and shed continued to be used by the assessee for its own workshop purchase.
The Revenue Dept. treated income of the owner/assesee from the Development Agreement as of income from business which was rejected by the Income Tax Appellate Tribunal who treated the same as capital gain. Hence this appeal.
Judgment
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