Venkataswami Naidu & Co. v. CIT

35 ITR 594Supreme Court of India1959#765 most cited

What is Venkataswami Naidu & Co. v. CIT authority for?

A transaction is considered an adventure in the nature of trade, constituting business income, if there is a pre-determination to sell an asset at a profit. Conduct prior to purchase, as well as subsequent improvements, are relevant in determining the character of the transaction.

133

judgments rely on this decision, according to BharatTax’s citation analysis of 367,518 Indian tax judgments — from 2008 to 2026.

Also referred to as

Venkataswami Naidu & Co. v. CIT · 35 ITR 594 · adventure in the nature of trade · business income · profit on sale of land · pre-determination to sell · isolated transaction · capital gains · section 45

Sections most often in play

Section 143(3)Section 133(6)Section 45Section 131Section 142(1)Section 147Section 148Section 44AD

Issues it is cited on

transfer of capital assetsection 45short term capital gainlong term capital gainsection 28previous yeartransferincome from other sourcesbusinesscompanysection 142(1)section 143(2)

Judgments citing Venkataswami Naidu & Co. v. CIT

Commissioner of Income Tax Del vs. M/S Mansarovar Investments Ltd

Appeals are allowed

ITA - 961 / 2005HC Delhi07 Aug 2020
Section 260ASection 391Section 47

…s stock- in-trade. During income tax assessment proceedings for the preceding year, holding of shares were treated as stock-in-trade and not as capital asset. Further relying upon the decision of the Supreme Court in G.Venkataswami Naidu Co. v. CIT, (1959) 35 ITR 594, (SC), it was concluded that Section 45 has no applicability to the case of the Respondent-assessees. The appeal before CIT(A) also was rejected and the assessment order passed by the AO was confirmed. When the matter travelled to the Tribunal, the Respondent- assesees assailed the common order of CIT(A) by raising several contentions; the for…

Orissa State Co-Operative Handicrafts Corporation Ltd., Bhubaneswar vs. DCIT, Circle-4(1), Bhubaneswar

In the result, appeal of the assessee i

ITA 393/CTK/2018[2015-16]Status: DisposedITAT Cuttack05 Jun 2020AY 2015-16

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.392&393/Ctk/2018 (नििाारण वषा / Assessment Year : 2014 – 2015 & 2015-2016) M/S Orissa State Co-Operative Vs. Ito Wardd-4(1), Handicrafts Corporation Limited Bhubaneswar D-2/3, Industrial Estate, Rasulgarh, Bhubaneswar स्थायी ऱेखा सं./Pan No. : Aaaao 0096 K (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : None राजस्व की ओर से /Revenue By : Shri M.K.Goutam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 20/02/2020 घोषणा की तारीख/Date Of Pronouncement : 05/06/2020 आदेश / O R D E R Per L.P.Sahu, Am :

For Appellant: NoneFor Respondent: Shri M.K.Goutam, CIT-DR
Section 80P(2)

…of the assessee, but is an isolated or single instance of a transaction, the onus to prove that the transaction is an adventures in the nature of trade is on the department- Saroj Kumar Mazumdar v. CIT (1959)37 ITR 242,248 (SC) Dalmia Cement Ltd v. CIT (1976)105 ITR 633, 640 (SC) Commrs. of Inl. Rev. v. Reinhold (1953)34 Tax Cas. 389,393 In the instant case Ld. A.O had failed to make out any case to prove the interest income considered by the assessee as business income to be not a business income. Therefore the treatment of interest income as income from other sources by Ld A.O is only out of presumption and n…

Orissa State Co-Operative Handicrafts Corporation Ltd., Bhubaneswar vs. DCIT, Circle-4(1), Bhubaneswar

In the result, appeal of the assessee i

ITA 392/CTK/2018[2014-15]Status: DisposedITAT Cuttack05 Jun 2020AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.392&393/Ctk/2018 (नििाारण वषा / Assessment Year : 2014 – 2015 & 2015-2016) M/S Orissa State Co-Operative Vs. Ito Wardd-4(1), Handicrafts Corporation Limited Bhubaneswar D-2/3, Industrial Estate, Rasulgarh, Bhubaneswar स्थायी ऱेखा सं./Pan No. : Aaaao 0096 K (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : None राजस्व की ओर से /Revenue By : Shri M.K.Goutam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 20/02/2020 घोषणा की तारीख/Date Of Pronouncement : 05/06/2020 आदेश / O R D E R Per L.P.Sahu, Am :

For Appellant: NoneFor Respondent: Shri M.K.Goutam, CIT-DR
Section 80P(2)

…of the assessee, but is an isolated or single instance of a transaction, the onus to prove that the transaction is an adventures in the nature of trade is on the department- Saroj Kumar Mazumdar v. CIT (1959)37 ITR 242,248 (SC) Dalmia Cement Ltd v. CIT (1976)105 ITR 633, 640 (SC) Commrs. of Inl. Rev. v. Reinhold (1953)34 Tax Cas. 389,393 In the instant case Ld. A.O had failed to make out any case to prove the interest income considered by the assessee as business income to be not a business income. Therefore the treatment of interest income as income from other sources by Ld A.O is only out of presumption and n…

Pushap Raj Bohra, Jalore vs. DCIT, Barmer Circle, Barmer

In the result, appeal of the assessee is allowed

ITA 158/JODH/2019[2015-16]Status: DisposedITAT Jodhpur20 Mar 2020AY 2015-16

Bench: Shri R.C. Sharma & Shri Sandeep Gosain(Respondent) Pan: Aanpb 4456 C

Section 142(1)Section 143(3)Section 45(2)Section 54BSection 54F

…ssee or his family members was used for personal purposes, and the intention was to gain profit only. Inter alia with this, it was concluded, that the transaction was in the nature of trade. … … 11. Coming to the G. Venkataswami Naidu and Co.'s case [1959] 35 ITR 594 (SC), the facts of that case were telling, inasmuch as, the assessee was the managing agent of the company, the mill, to whom the land was sold, and the land was situated adjoining the mill, a total land measured 5 acres 26 cents, and was purchased by four sale deeds dated October 25, 1941, November 15, 1941, June 29, 1942 and November 19, 1942, a…

Ramesh Raj Bhra, Jalore vs. DCIT, Barmer Circle, Barmer

In the result, appeal of the assessee is allowed

ITA 157/JODH/2019[2015-16]Status: DisposedITAT Jodhpur20 Mar 2020AY 2015-16

Bench: Shri R.C. Sharma & Shri Sandeep Gosain(Respondent) Pan: Aappb 7135 G

Section 142(1)Section 143(3)Section 45(2)Section 54BSection 54F

…ssee or his family members was used for personal purposes, and the intention was to gain profit only. Inter alia with this, it was concluded, that the transaction was in the nature of trade. … … 11. Coming to the G. Venkataswami Naidu and Co.'s case [1959] 35 ITR 594 (SC), the facts of that case were telling, inasmuch as, the assessee was the managing agent of the company, the mill, to whom the land was sold, and the land was situated adjoining the mill, a total land measured 5 acres 26 cents, and was purchased by four sale deeds dated October 25, 1941, November 15, 1941, June 29, 1942 and November 19, 1942, a…

Parvathaneni Ramakrishna, Vijayawada vs. The Deputy Commissioner of Income Tax, Circle-2(1), Vijayawada

In the result, appeal filed by the assessee is dismissed

ITA 72/VIZ/2019[2013-14]Status: DisposedITAT Visakhapatnam26 Feb 2020AY 2013-14

Bench: Shri V. Durga Rao, Hon’Bleparvathaneni Ramakrishna, Vs. Dcit, Circle-2(1), D.No. 54-20-9/5, Flat No.6, Vijayawada. Deepika Apartment, Srinagar Colony, Vijayawada. Pan No. Aiypp 4347 F (Appellant) (Respondent)

For Appellant: Shri C.Subrahmanyam, FCAFor Respondent: Shri B.Rama Krishna, Sr.DR
Section 143(3)

…REHWS is the activity ‘adventure in the nature of trade’, therefore it has to be treated as business income and not capital gains. The ld. CIT(A) by following the judgment of the Hon'ble Supreme Court in the case of G.Venkataswamy Naidu & Co. Vs. CIT [(1959) 35 ITR 594] came to a conclusion that what is the intention of the assessee has to be seen to decide whether transaction is ‘adventure in the nature of trade or not. The ld. CIT(A) by considering the principles laid (Parvathaneni Ramakrishna) down by the Hon'ble Supreme Court in the above referred to judgment, in my opinion, he came to a correct conclusion…

Haresh Khiamal Nanwani, Mumbai vs. ACIT-17(1), Mumbai

In the result, the order passed by the Ld

ITA 6534/MUM/2018[2013-14]Status: DisposedITAT Mumbai27 Dec 2019AY 2013-14

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2013-14 Haresh Khiamal Nanwani, Acit-17(1), Room No. Ab-117, 1017/1018, Dalamal Tower, Vs. Staff Room-135, Aayakarbhavan, Free Press Journal Marg, 211, Mumbai-400020. Nariman Point, Mumbai- 400021. Pan No. Adgpn9628J Appellant Respondent

For Appellant: Shri Satish R. Mody, ARFor Respondent: Smt. Jothilakshmi Nayak, Sr. DR
Section 143(3)Section 271(1)(c)

…ents’ in the balance sheet of the assessee. HareshKhiamalNanwani 7 The principle underlying the distinction between a capital sale and an adventure in the nature of trade were examined by the Hon’ble Supreme Court in Venkataswami Naidu & Co (G) v. CIT (1959) 35 ITR 594(SC), where it was held that the character of a transaction cannot be determined solely on the application of any abstract rule, principle or test but must depend upon all the facts and circumstances of the case. Also in Janki Ram Bhadur Ram v. CIT(1965) 57 ITR 21 (SC), the Hon’ble Supreme Court held that if the assessee, even at the time of acquis…

Smt. Minal Nayan Shah, Ahmedabad vs. The Pr, CIT-3, Ahmedabad

In the result, appeal of the assessee is allowed

ITA 643/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad15 Oct 2019AY 2014-15

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad

For Appellant: Advocate with Shri ParinFor Respondent: Shri Jitendra Kumar, CIT.D.R
Section 143(3)Section 54ESection 54F

…ding the assessee was to earn profit through activity of development of land which is adventure in the nature of business. In this context, reliance is placed on the judgment of the Hon'ble Supreme Court in the case of C Venktaswami Naidu and Co Vs CIT [1959] 35 ITR 594 in which the Hon'ble Apex Court held that in a given case, even an isolated ITA No.643/Ahd/19 [Smt. Minal Nayan Shah vs. Pr.C IT] A.Y. 2014-15 - 4 - transaction can satisfy the description of an adventure in the nature of trade provided at least some of the essential features of trade are present in the isolated or single transaction. (e) Act o…

Rajendra B. Raisoni, Pune vs. Assistant Commissioner of Income-Tax

In the result, the appeal of assessee is partly allowed

ITA 737/PUN/2015[2007-08]Status: DisposedITAT Pune18 Apr 2019AY 2007-08

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपील सं. / Ita No.737/Pun/2015 "नधा"रण वष" / Assessment Year : 2007-08 Rajendra B. Raisoni, 401/402, Poonam Plaza, ………. अपीलाथ" / Market Yard Road, Market Yard, Appellant Pune – 411 037. Pan : Aaspr4761K. बनाम V/S

For Appellant: Shri Vipin GujarathiFor Respondent: Shri Sudhendu Das
Section 132Section 143(3)Section 153ASection 2(14)

…on of Hon’ble Bombay High Court in the case of Ashok Kumar Jalan Vs. CIT reported in 187 ITR 316. CIT Vs. Jalan Kumar 316 (Bom). He further placed reliance on the decision of Hon’ble Apex Court in the case of G. Venkata Swami Naidu & Co. Vs. CIT reported in 35 ITR 594. Ld.D.R. on the other hand, supported the order of AO and Ld.CIT(A). 7. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to the treatment of profit on sale of land. It is Revenue’s contention that the profit is business income whereas it is assessee’s contention that it is exe…

ADIT, New Delhi vs. Ms. Asha Kumar Aggarwal, New Delhi

In the result, the appeal filed the Revenue is dismissed

ITA 1340/DEL/2012[2008-09]Status: DisposedITAT Delhi08 Mar 2019AY 2008-09

Bench: Shri H.S. Sidhu & Shri O.P. Kantassessment Year: 2008-09 Adit, Vs. Ms. Asha Kumar Aggarwal, Circle-1(1) (Intl. Taxation), E-335, East Of Kailash, New New Delhi Delhi Pan :Adcpa4605J (Appellant) (Respondent) Appellant By Shri C.P. Singh, Sr. Dr Respondent By Shri R.S. Ahuja, Ca

Section 143(2)

…No. 1121/09 dated 06/01/2010. 2.2 The Assessing Officer, however, was not satisfied with the submission of the assessee and he relied on the decision of the Hon’ble Supreme Court in the case of G. Venkataswami Naidu and Company Vs. Commissioner of Income Tax, 35 ITR 594 and CBDT Circular No. 4 of 2007 alongwith Instruction No.1827, dated 31st of August 1989. In view of the principles laid down in the decision of the Supreme Court and the CBDT circular, he made following observations on the facts of the case: “1. It is submitted by the assessee that she is a school teacher. So trading activity with regard to secur…

The ACIT, Trichur vs. Sri.Arun Majeed, Thrissur

In the result, the appeals of the Revenue are dismissed

ITA 497/COCH/2018[2014-15]Status: DisposedITAT Cochin06 Feb 2019AY 2014-15

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 132Section 143(3)Section 153A

…assessee has undertaken buying and selling of landed property with a view to earn profit which can only be treated as “adventure in the nature of trade”. He also relied on the judgment of the Supreme Court in the case of G. Venkataswami Naidu & Co. vs. CIT (35 ITR 594) wherein it was held that “just as the conduct of the purchaser subsequent to the purchase of a commodity in improving or converting it so as to make it more readily resalable is a relevant factor in determining the character of the transaction, so would his conduct prior to the purchase be relevant if it shows a design and a purpose". He also…

The ACIT, Trichur vs. Sri.Arun Majeed, Thrissur

In the result, the appeals of the Revenue are dismissed

ITA 496/COCH/2018[2013-14]Status: DisposedITAT Cochin06 Feb 2019AY 2013-14

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 132Section 143(3)Section 153A

…assessee has undertaken buying and selling of landed property with a view to earn profit which can only be treated as “adventure in the nature of trade”. He also relied on the judgment of the Supreme Court in the case of G. Venkataswami Naidu & Co. vs. CIT (35 ITR 594) wherein it was held that “just as the conduct of the purchaser subsequent to the purchase of a commodity in improving or converting it so as to make it more readily resalable is a relevant factor in determining the character of the transaction, so would his conduct prior to the purchase be relevant if it shows a design and a purpose". He also…

The ACIT, Trichur vs. Sri.Arun Majeed, Thrissur

In the result, the appeals of the Revenue are dismissed

ITA 495/COCH/2018[2012-13]Status: DisposedITAT Cochin06 Feb 2019AY 2012-13

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 132Section 143(3)Section 153A

…assessee has undertaken buying and selling of landed property with a view to earn profit which can only be treated as “adventure in the nature of trade”. He also relied on the judgment of the Supreme Court in the case of G. Venkataswami Naidu & Co. vs. CIT (35 ITR 594) wherein it was held that “just as the conduct of the purchaser subsequent to the purchase of a commodity in improving or converting it so as to make it more readily resalable is a relevant factor in determining the character of the transaction, so would his conduct prior to the purchase be relevant if it shows a design and a purpose". He also…

The ACIT, Trichur vs. Sri.Arun Majeed, Thrissur

In the result, the appeals of the Revenue are dismissed

ITA 494/COCH/2018[2011-12]Status: DisposedITAT Cochin06 Feb 2019AY 2011-12

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 132Section 143(3)Section 153A

…assessee has undertaken buying and selling of landed property with a view to earn profit which can only be treated as “adventure in the nature of trade”. He also relied on the judgment of the Supreme Court in the case of G. Venkataswami Naidu & Co. vs. CIT (35 ITR 594) wherein it was held that “just as the conduct of the purchaser subsequent to the purchase of a commodity in improving or converting it so as to make it more readily resalable is a relevant factor in determining the character of the transaction, so would his conduct prior to the purchase be relevant if it shows a design and a purpose". He also…

The Income Tax Officer, Amritsar vs. Sh. Shiv Raj Singh Bawa, Amritsar

In the result, the Revenue’s appeal is allowed and the assessee’s CO, dismissed

ITA 407/ASR/2016[2012-13]Status: DisposedITAT Amritsar30 Jan 2019AY 2012-13

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi.T.A. No. 407/Asr/2016 Assessment Year: 2012-13

For Appellant: Sh. Charan Dass (D.R.)For Respondent: Sh. Tarun Bansal (Adv.)
Section 143(3)Section 40A(3)

…in the said land. The law in the matter is well settled, and we may in this regard, for the sake of completeness of our order, refer to some celebrated decisions by the Apex Court settling the law in the matter, viz. G. Venkataswami Naidu & Co. v. CIT [1959] 35 ITR 594 (SC); Janki Ram Bahadur Ram v. CIT [1965] 57 ITR 21 (SC); Khan Bahadur Ahmed Alladin & Sons v. CIT [1968] 68 ITR 573 (SC); CIT v. Sutlej Cotton Mills Supply Agency Ltd. [1975] 100 ITR 706 (SC). The reference by the ld. Departmental Representative (DR), Sh. Charan Dass, to decisions in Karanpura Development Co. Ltd. v. CIT [1962] 44 ITR 362 (SC) an…

The DCIT, Circle-3(3), Ahmedabad vs. Shri Vijay Aasumal Keshwani, Ahmedabad

In the result, we set aside the order of the CIT(A) and affirm the action of the AO

ITA 1946/AHD/2016[2013-14]Status: DisposedITAT Ahmedabad29 Jan 2019AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 1946/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2013-14)

For Appellant: Shri S. K. Dev, Sr. D.R

…iving rise to dispute is beset with uncharacteristic features which are akin to an adventure in the persuit of trade rather than a capital transaction. 8.7 Pertinent to note here that the Hon’ble Supreme Court in the case of Dalmia Cement Ltd. vs. CIT (1976) 105 ITR 633 (SC) held that it is not possible to evolve any single legal test or formula which could be applied in determining whether a transaction is an adventure nature of trade and that the answer to the question must depend in each cost on the total impression and the fact of all the relevant factors and circumstances proved therein and which determined…

M/S. Onkareshwar Properties (P) Ltd., New Delhi vs. Addl. CIT, New Delhi

ITA 1823/DEL/2015[2011-12]Status: DisposedITAT Delhi21 Jan 2019AY 2011-12

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri Rajesh Jain, CAFor Respondent: Shri Shailesh Kumar, Sr.DR
Section 143(3)Section 14ASection 40

…ht by the assessee was purely for business activity. The assessee used to provide land to the developer who in turn used to develop the said land. He has referred the judgment including of Supreme Court in the case of G. Venkataswami Naidu and Company vs. CIT 35 ITR 594 and held that assessee has purchased and sold the land which was clearly an adventure in the nature of trade and therefore, sale proceed has to be treated as business income of the assessee and accordingly he taxed sum of Rs. 119,86,86,889/- as business income. 4. Ld. CIT (A) has decided the appeal ex parte after noting that various notices sent t…

Sh. Parminder Singh, Kapurthala vs. A.C.I.T, Central Circle- I, Jalandhar

In the result, the appeal filed by the assessee stands allowed

ITA 329/ASR/2017[2009-10]Status: DisposedITAT Amritsar19 Dec 2018AY 2009-10

Bench: Sh. Sanjay Arora & Sh. N.K.Choudhryita No.329(Asr)/2017 Assessment Year:2009-10

For Appellant: Sh. Surinder Mahajan (Ld. CA)For Respondent: Sh. Charan Dass (Ld. DR)
Section 250(6)

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. SANJAY ARORA, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA No.329(Asr)/2017 Assessment Year:2009-10 Sh. Parminder Singh Vs. Asst. CIT, Gopal Park, Kapurthala Central Circle-I, Jalandhar [PAN:ACMPS 6748R] (Appellant) (Respondent) Appellant by: Sh. Surinder Mahajan (Ld. CA) Respondent by: Sh. Charan Dass (Ld. DR) Date of hearing: 28.11.2018 Date of pronouncement: 19.12.2018 ORDER PER N.K.CHOUDHRY, JM: The instant appeal has been preferred by the Assessee/Appellant against the order dated 03.02.2017, passed by the Ld. CI…

Assistant Commissioner of Income-Tax vs. Shri Ranjit Hanmantrao Mohite, Pune

In the result, the appeal of Revenue is dismissed

ITA 1253/PUN/2015[2011-12]Status: DisposedITAT Pune26 Oct 2018AY 2011-12

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: Shri Gaurav BathamFor Respondent: Shri Sanket Joshi
Section 143(3)

….D.R. submitted that only in six instances, assessee had traded in shares and therefore the activity of the assessee cannot be considered to be “adventure in nature of trade”. We find that Hon’ble Apex Court in the case of G. Venkataswami Naidu & Co., (1959) 35 ITR 594 (SC) has held that even on isolated transaction can satisfy the description of an ‘adventure in the nature of trade’ provided at least some of the essential features of trade are present in the isolated or single transaction. Before us, Revenue has not pointed out any fallacy in the findings of Ld.CIT(A). We therefore find no reason to interfere…

The DCIT, Circle-2(1)(1), Ahmedabad vs. Ganesh Housing Corporation Limited, Ahmedabad

In the result appeal of the Revenue is dismissed

ITA 3083/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad23 Oct 2018AY 2009-10

Bench: Shri Rajpal Yadav & Shri Amarjit Singh"नधा"रण वष"/ Asstt. Year: 2009-2010 Ganesh Housing Corporation Ltd. Dcit, Cir.2(1)(1) “Ganesh Corporate House” Navjivan Trust Bldg. Vs. Ahmedabad. 100 Ft. Hebatpur-Thaltej Road Nr. Sola Bridge Off. S.G. Highway Ahmedabad 380 015. Pan : Aaacg 5590 Q With Co No.216/Ahd/2015 "नधा"रण वष"/ Asstt. Year: 2009-2010 Dcit, Cir.2(1)(1) Ganesh Housing Corporation Ltd. Navjivan Trust Bldg. “Ganesh Corporate House” Vs. Ahmedabad. 100 Ft. Hebatpur-Thaltej Road Nr. Sola Bridge Off. S.G. Highway Ahmedabad 380 015. (Applicant) (Responent) : Shri Dhiren Shah, Ar Assessee By Revenue By : Shri C. Danday, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 19/09/2018 घोषणा क" तार"ख /Date Of Pronouncement: 23/10/2018 आदेश/O R D E R

For Respondent: Shri C. Danday, CIT-DR
Section 143(3)Section 148Section 253Section 4Section 40A(2)(b)

…ion. Thus, it is to be inferred that intention of erstwhile company ab-inito was for acquiring investment in stock and not investment in land. The AO made reference to the decision of Hon’ble Supreme Court in the case of V. Venkataswami Naidu & Co. Vs. CIT, , 35 ITR 594 and in the case of Dalmia Cement Ltd. Vs. CIT, 105 ITR 633. On the strength of these decisions, he observed that even a single transaction of purchase and sale may be treated as business transaction. 29. The ld.CIT(A), on the other hand, made re-analysis of all the facts and circumstances and did not concur with the AO as per the finding extracte…