CIT v. V A Trivedi

172 ITR 95High Court1988#3215 most cited

What is CIT v. V A Trivedi authority for?

The character of a transaction as an adventure in the nature of trade, or not, depends on the totality of circumstances, and no single test is sufficient. Specifically, for land, the court will consider its use for agricultural purposes prior to transfer and the intended future use by the purchaser.

37

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. V.A. Trivedi · 172 ITR 95 · adventure in nature of trade · agricultural land · date of transfer · intended use · totality of circumstances

Also reported as

38 Taxmann 102

Sections most often in play

Section 143(3)Section 115BBE Section 133(6)Section 142(1)Section 143(1)Section 143(2)Section 2(13)Section 2(14)

Issues it is cited on

section 115ad section 2(1a)section 2(1)section 63 section 60 section 2(14)(iii)section 115a section 65 transfer of capital asset section 2(14)date of transfer put to use

Judgments citing CIT v. V A Trivedi

Smt. Puja Sekhri, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5361/DEL/2014[2010-11]Status: DisposedITAT Delhi30 Sept 2021AY 2010-11

Bench: Shri G.S.Pannu & Shri Kul Bharat

…absent in any case and that in each case one or more of those factors may make appearance and that the ultimate decision will have to be reached on a balanced consideration of the totality of circumstances. " Referring to the case of CIT v V A Trivedi [1988J] 172 ITR 95 (Born), which had considered the question again, their Lordships noted that the Bombay High Court had 'observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant date and further whether on the relevant date t…

Smt. Puja Sekhri, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5360/DEL/2014[2009-10]Status: DisposedITAT Delhi30 Sept 2021AY 2009-10

Bench: Shri G.S.Pannu & Shri Kul Bharat

…absent in any case and that in each case one or more of those factors may make appearance and that the ultimate decision will have to be reached on a balanced consideration of the totality of circumstances. " Referring to the case of CIT v V A Trivedi [1988J] 172 ITR 95 (Born), which had considered the question again, their Lordships noted that the Bombay High Court had 'observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant date and further whether on the relevant date t…

Sh. Kapil Sekhri, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5315/DEL/2014[2010-11]Status: DisposedITAT Delhi30 Sept 2021AY 2010-11

Bench: Shri G.S.Pannu & Shri Kul Bharat

…absent in any case and that in each case one or more of those factors may make appearance and that the ultimate decision will have to be reached on a balanced consideration of the totality of circumstances. " Referring to the case of CIT v V A Trivedi [1988J] 172 ITR 95 (Born), which had considered the question again, their Lordships noted that the Bombay High Court had 'observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant date and further whether on the relevant date t…

Sh. Kapil Sekhri, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5314/DEL/2014[2009-10]Status: DisposedITAT Delhi30 Sept 2021AY 2009-10

Bench: Shri G.S.Pannu & Shri Kul Bharat

…absent in any case and that in each case one or more of those factors may make appearance and that the ultimate decision will have to be reached on a balanced consideration of the totality of circumstances. " Referring to the case of CIT v V A Trivedi [1988J] 172 ITR 95 (Born), which had considered the question again, their Lordships noted that the Bombay High Court had 'observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant date and further whether on the relevant date t…

Smt. Aarti Sekhri, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5313/DEL/2014[2010-11]Status: DisposedITAT Delhi30 Sept 2021AY 2010-11

Bench: Shri G.S.Pannu & Shri Kul Bharat

…absent in any case and that in each case one or more of those factors may make appearance and that the ultimate decision will have to be reached on a balanced consideration of the totality of circumstances. " Referring to the case of CIT v V A Trivedi [1988J] 172 ITR 95 (Born), which had considered the question again, their Lordships noted that the Bombay High Court had 'observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant date and further whether on the relevant date t…

Smt. Aarti Sekhri, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5312/DEL/2014[2009-10]Status: DisposedITAT Delhi30 Sept 2021AY 2009-10

Bench: Shri G.S.Pannu & Shri Kul Bharat

…absent in any case and that in each case one or more of those factors may make appearance and that the ultimate decision will have to be reached on a balanced consideration of the totality of circumstances. " Referring to the case of CIT v V A Trivedi [1988J] 172 ITR 95 (Born), which had considered the question again, their Lordships noted that the Bombay High Court had 'observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant date and further whether on the relevant date t…

Tikuchand Durgaji Jogani, Mumbai vs. ACIT - 17 (3), Mumbai

In the result, appeals filed by the assessee for assessment years 2012-

ITA 6798/MUM/2018[2012-13]Status: DisposedITAT Mumbai22 Jan 2020AY 2012-13

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2012-2013 Tikuchand Durgaji Jogani, The Acit-17(3), 301, Gundecha Chambers, Room No. 137, N.M. Road, Fort, Aayakar Bhavan, M.K. Mumbai - 400023 Vs. Road, Pan: Aaapj8019Q Mumbai - 400020

For Appellant: Shri Ashok J. Patil (AR)For Respondent: Shri Amit Pratap Singh (DR)

Section 143Section 14ASection 234ASection 271

…ssue in detail and placing reliance on various decisions of the Tribunal i.e. in the case of Dineshbhai C. Patel (HUF),passed in ITA616/Nag/2008, vide order dated 5-6-2009; Gopal Purohit, 20 DTR (Mum)(Trib) 99; the decision in the case of CIT Vs. V.A.Trivedi, 172 ITR 95 (Mum) and the decision of the Hon‟ble High Court in the case of CIT Vs. Gopal Purohit, 228 CTR 582, allowed the issue in favour of assessee. The findings of the Tribunal for the assessment year 2006-07 have been recorded in para 12 to 16, which are as under:- “12. We have carefully considered the rival submissions and, perused the material on reco…

ITO, W-4, Panchkula vs. Smt. Seema Bishnoi, Panchkula

In the result appeal of the Department is dismissed

ITA 103/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh20 Feb 2019AY 2013-14

Bench: Shri N.K. Saini & Shri Sanjay Gargthe Ito Vs. Smt. Seema Bishnoi Ward-4, Panchkula H.No. 906, Sec-08, Panchkula

For Appellant: Shri. A.K. Jindal, CAFor Respondent: Shri. G.S. Phani Kishore, CI TDR

Section 148Section 54BSection 54F

…ner of Wealth Tax • CIT Vs. Gemini Pictures, 220 ITR 43 • Sarifabibi’s Case [ 1993] 204 ITR 631 (SC) • CWT Vs. Officer-in Charge (Court of Wards), Paigah [1976] 105 ITR 133 (SC) • T. Sarojini Devi V. Sri Kristna, AIR 1944 Mad 401 • CIT Vs. V.A. Trivedi [1988] 172 ITR 95 • CIT Vs. Siddharth J. Desai [1981] 139 ITR 628 9. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and furnished the written submissions on 24/11/2016 the relevant portion of which had been incorporated by the Ld. CIT(A) in para 4.5 of the impugned order which is reproduced verbatim as under : “ In this regard the appellant subm…

ITO 31(2)(2), Mumbai vs. Llaln & Co, Mumbai

ITA 356/MUM/2017[2006-07]Status: DisposedITAT Mumbai30 Jan 2019AY 2006-07

Bench: Shri Shamim Yahya & Shri Ravish Soodthe Income Tax Officer- M/S Lalan & Co. 31(2)(2) C/O. Jogeshwari Petrol Supply Co. 102, C-13 Pratyakshaar S.V. Road, Jogeshwari West, Bhavan Mumbai-400102 Vs. Bandra Kurla Complex, Bandra (East), Mumbai-400051. Pan – Aaafl2403N (Appellant) (Respondent)

For Appellant: Shri Satish Chandra Rajore, D.RFor Respondent: Shri Tanmay Phadke, A.R

…on record which would show that the assessee had purchased the property with the intention to develop the same. The Tribunal while concluding as hereinabove relied upon the decision of' the Hon‟ble Bombay High Court in the case of CIT Vs. V.A. Trivedi (1988) 172 ITR 95 (Bom). On the basis of its aforesaid deliberations it was held by the Tribunal that the assessee was an investor and not a developer. (ii) The Tribunal observed that in view of its earlier decision in the case of Jethalal D Mehta vs. DCIT (2 SOT 422) the assignment of rights to receive TDRs was not liable to tax. (iii) Further, it was observed by…

Income Tax Officer, Alwar vs. M/S Krish Home Pvt. Ltd., New Delhi

In the result, we set aside the order of the ld

ITA 390/JPR/2018[2014-15]Status: DisposedITAT Jaipur13 Dec 2018AY 2014-15

For Appellant: Shri Rajeev Sogani (CA)For Respondent: Shri A.K. Rawat (JCIT) fu/kZkfjrh dh vksj ls@

Section 10(1)Section 115JSection 2(14)(iii)

…ible of user of land by some possible future owner. The Hon'ble Supreme Court in the case of Smt. Sarifabibi Mohmed Ibrahim v. Commissioner of Income-tax (supra) has also considered the decision of Hon’ble Bombay High Court in the case of CIT Vs. V.A. Trivedi 172 ITR 95 and observed at page 641 as under: “ The Bench observed that to ascertain the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the relevant 8 ITO vs. M/s Krish Home Pvt. Ltd. date and further whether on the relevant date the land was intende…

Shraddha Bagla, Mumbai vs. ITO 13(1)(1), Mumbai

ITA 2879/MUM/2016[2011-12]Status: DisposedITAT Mumbai13 Jul 2018AY 2011-12

Bench: Shri G. Manjunatha, Am & Shri Ravish Sood, Jm Mrs. Shraddha Bagla Ito-13(1)(1) 12, 7/11, Chunawala Bldg, Mumbai बिधम/ Kosla Street Vs. Mumbai-400003

For Appellant: Shri. Bhupendra Shah, A.RFor Respondent: Shri. Rajat Mittal, D.R

Section 143(2)Section 143(3)Section 2(14)(iii)Section 24Section 271(1)Section 45

…in the certificate that the said village had a population of 1470 persons. The ld. A.R further submitted that the case laws relied upon by the A.O viz. (i) Smt. Sarifa Bibi Mohammad Ibrahim Vs. CIT (1993) 204 ITR 631 (SC); and (ii) CIT Vs. V.A. Trivedi (1988) 172 ITR 95 (Bom) having been rendered in context of the pre- amended definition of capital asset under Sec. 2(14) of the Act, therefore, the same were distinguishable and had wrongly been followed for drawing of adverse inferences in the hands of the assessee. The ld. A.R in support of P a g e | 4 ITA No. 2879/Mum/2016 A.Y.2011-12 Mrs. Shraddha Bagla Vs. ITO…

Bhimrao Janu Jadhav, Mumbai vs. ITO WD 4 Panvel, New Panvel

In the result the appeal of the assessee is dismissed

ITA 390/MUM/2016[2011-12]Status: DisposedITAT Mumbai07 Feb 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Pawan Singh, Jm M/S. Bhimrao Janu Jadhav Vs. Ito Wd 4 Panvel 205, Highway Commerce Centre, Triffed Tower 2Nd Floor, L Sec-17 Jn Of I.B. Patel Road, W.E. Highway Behind H.P. Petrol Pump Opp. Khanda Colony Goregaon (E), New Panvel -410 206 Mumbai – 400 063

Section 143(3)Section 2Section 2(14)Section 2(14)(iii)

…Court has decided the issue of agricultural land at pages 963 and 964 as under; 'In our opinion, the principles laid down by the Supreme Court in the case of Smt. Sarifabibi Mohamed Ibrahim v. CIT (1993) 204 ITR 631 and by this court in Trivedi's case (1988) 172 ITR 95 do emphasize the factor of non- user of the land for cultivation for a reasonable span of time prior to the date of transfer as a crucial factor for determination of the issue. Applying the ratio of the Supreme Court judgment in Sarifabibi's Case (1993) 204 ITR 631 to the facts of the case, we hold that the reference lands could not be considered…

Mega City Development Corporation, Chennai vs. ACIT(OSD), Chennai

In the result, both the appeals are dismissed

ITA 3255/CHNY/2016[2012-13]Status: DisposedITAT Chennai21 Jun 2017AY 2012-13

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Respondent: Shri Nandakumar, JCIT

…ts associated with the purchase and resale and the similarity of the transaction to operations usually associated with trade or business ; (v) the repetition of the transaction ; and (vi) the element of pride of possession. 8. In CIT v. V. A. Trivedi [1988] 172 ITR 95 (Bom) a Division Bench of this court, while holding that no single test or formula can be applied in determining whether a transaction involving purchase and sale of land is an adventure in the nature of trade observed that generally speaking, the original intention of the party in purchasing the property, the magnitude of the transaction of p…

Kakb Developers, Chennai vs. ITO, Ncw 3 (4), Chennai

In the result, both the appeals are dismissed

ITA 3254/CHNY/2016[2012-13]Status: DisposedITAT Chennai21 Jun 2017AY 2012-13

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Respondent: Shri Nandakumar, JCIT

…ts associated with the purchase and resale and the similarity of the transaction to operations usually associated with trade or business ; (v) the repetition of the transaction ; and (vi) the element of pride of possession. 8. In CIT v. V. A. Trivedi [1988] 172 ITR 95 (Bom) a Division Bench of this court, while holding that no single test or formula can be applied in determining whether a transaction involving purchase and sale of land is an adventure in the nature of trade observed that generally speaking, the original intention of the party in purchasing the property, the magnitude of the transaction of p…

M/S Abr Auto Pvt. Ltd., New Delhi vs. ITO, New Delhi

Appeal of the assessee is allowed

ITA 2375/DEL/2013[2009-10]Status: DisposedITAT Delhi05 Aug 2016AY 2009-10

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaabr Auto Pvt. Ltd. Vs Ito B-5, Chirag Enclave, Ward 1(2) New Delhi. New Delhi. Aadca5137C

…present its case. This ground of appeal is accordingly allowed for statistical purposes. 5.4 As far as the second issue regarding the treatment of long term capital gains as business income is concerned the Hon’ble Bombay High Court in CIT vs. V.A. Trivedi 172 ITR 95 (Bom.) has held that “ordinarily where a person acquired land with a view to selling it later after developing it and actually divided the land into plots and sold the same in parcels, the activity could only be described as a business adventure. Generally speaking, the original intention of the party in purchasing the property, the magnitude of…

DCIT, Bangalore vs. Shri. B. Sudhakar Pai, Bangalore

In the result, the appeal of the revenue is allowed

ITA 708/BANG/2011[2007-08]Status: DisposedITAT Bangalore30 Jun 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Dr.P.K. Srihari, Addl. CIT (D.R.)For Respondent: Shri S. Venkatesan, C.A

…has decided the issue of agricultural land at pages 963 and 964 as under : “ In our opinion, the principles laid down by the Supreme Court in the case of Smt. Sarifabibi Mohamed Ibrahim V. CIT (1993) 204 ITR 631 and 15 by this court in Trivedi’s case (1988) 172 ITR 95 do emphasize the factor of non-user of the land for cultivation for a reasonable span of time prior to the date of transfer as a crucial factor for determination of the issue. Applying the ratio of the Supreme Court judgment in Sarifabibi’s Case (1993) 204 ITR 631 to the facts of the case, we hold that the reference lands could not be considered a…

Commissioner of Income Tax-IV vs. Private Limited

The appeal is dismissed

ITA/489/2014HC Delhi20 Aug 2015

For Appellant: Mr Kamal Sawhney and Mr Raghaven SinghFor Respondent: Ms Kavita Jha and Ms Mehak Gupta

…d the findings of the CIT (A), by virtue of the impugned order dated 18.11.2013. 6. We have heard the learned counsel for the parties and have examined the records of the case. The decision of the Bombay High Court in the case of CIT v. V.A.Trivedi : 172 ITR 95 (Bom.) was placed before us. In that decision, it has been observed that it is not possible to evolve a single test or formula which can be applied in determining whether the transaction was an adventure in the nature of trade. It was also noted that in the case of purchase and sale of land, generally speaking, the original intention of the…