DCIT -26(1), Mumbai vs. Shreyas Builders, Mumbai
In the result, the appeal of Revenue is dismissed
ITA 2404/MUM/2023[2013-14]Status: DisposedITAT Mumbai23 Feb 2024AY 2013-14
Bench: Shri Br Baskaran, Am & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.2404/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit-17(1) बिधम/ Shreyas Builders Room No. 117, 1St Floor, G- A-42, 4Th Floor Roop Vs. Block, Kautliya Bhavan, Darshan, Juhu Lane, Bandra Kurla Complex, Andheri (West), Mumbai- Mumbai-400051. 400058. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aapfs5485E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Bhadresh Doshi Revenue By: Dr. Kishor Dhule (Cit,Dr) सुनवाई की तारीख / Date Of Hearing: 01/02/2024 घोषणा की तारीख /Date Of Pronouncement: 23/02/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue Against The Order Of The Ld. Commissioner Of Income Tax/Nfac, [Hereinafter Referred To As The “Cit”], Delhi Dated 08.05.2023 For Assessment Year 2013-14. 2. In The Several Grounds Raised In The Appeal, The Revenue Has Agitated The Action Of The Ld. Cit(A) Holding That The Assessee Was Engaged In The Business Of Real Estate Development & Therefore The Plot Of Land Held By It Was In Nature Of ‘Stock-In-Trade’ As Opposed To The Ao’S Action Of Holding The Said Plot Of Land To Be In Nature Of ‘Capital Asset’. According To Revenue Therefore, Since The Said Plot Of Land To Be In Nature Of ‘Capital Asset’, The Levy Of Capital Gains Tax Stood Triggered Upon Execution Of Joint Development Agreement (Herein
For Appellant: Shri Bhadresh DoshiFor Respondent: Dr. Kishor Dhule (CIT,DR)
Section 2(47)(v)
…capital gains" of the year in which the said land now held as stock in trade was sold by the assessee. It is observed a similar issue had come up for consideration before the Co-ordinate Bench of the Tribunal in the case of Dy. CIT v. Crest Hotels Ltd. [2001] 78 ITD 213 (Mum.) wherein the capital asset comprising of land and building of the hotel business was converted by the assessee into stock in trade of the construction business. The said stock in trade was sold by the assessee in the later year and capital gain on conversion was offered to tax by the assessee in the year which the stock in trade was sold. Th…
