Itta/559/2011 Of Commissioner Of Income Tax-Iii v. M/S. Shapoorji Pallonji Biotech Park Private Limited

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A.No.559 of 2011 DATED: 5.7.2013 Between:Commissioner of Income Tax-II,Hyderabad. … Appellant And M/s. Shapoorji Pallonji Biotech Park Pvt. Ltd.,Secunderabad. … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND I.T.T.A.No.559 OF 2011 Judgment:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) Having heard the learned counsel for the appellant and havinggone through impugned judgment and order, we are of the view thatthis appeal is not liable to be admitted on any ground. The assessee has been carrying on business of development ofland and as such, it entered into a memorandum of understanding withthe Government of Andhra Pradesh and as per the terms of the saledeed executed by it with the buyers to whom the assessee had soldthe plots in question during the previous year under consideration, theassessee was obliged not only to carry on various developmentalworks within the sold plots but also to provide various facilities beforegiving possession of those plots. Therefore, these plots are stock-in-trade and the same were sold in the course of business and so, theincome derived from such sale cannot be said to be a capital gainrather it is a business income. The learned Tribunal has correctly decided the matter. We,therefore, do not find any reason to interfere with the impugnedjudgment and order. The appeal is accordingly dismissed. __________________ K.J. SENGUPTA, CJ _____________ G. ROHINI, J 05.07.2013 pnb