The Commissioner Of Income Tax-I, Pune v. Baguio Investment Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 998 OF 2011 The Commissioner of Income Tax-I, Pune ..Appellant versus Baguio Investment Pvt. Ltd...Respondent -------- Mr. Vimal Gupta, Sr. Adv i/b Mrs. Padma Diwakar for the Appellant. None for the Respondent. ............. CORAM : J.P. DEVADHAR & M.S.SANKLECHA, JJ. DATE : 24[th] January, 2013 P.C. : In this appeal by the revenue, the following question of law has been proposed for our consideration. “Whether on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal did not err in not treating the transaction of sale of land as an adventure in the nature of trade and instead in treating the profit earned on such sale as taxable under the head capital gain? 2The basic dispute which arises in this case is whether the income arising on the sale of land is to be treated as sale of stock in trade and charged under the head 'income from business' or as sale of investment charged under the head of 'capital gains'. 3The finding of fact recorded by the CIT(A) and upheld by the tribunal is that: a) the respondent-company has been disclosing the land in its books of accounts as a investment and not as stock in trade; b)The land sold was held for a period of 10 years by the respondent-assessee; and c)No steps were taken for development of property by the respondent-assessee during the period it held the land. 4 In the above circumstances, decision of the Tribunal based on concurrent finding of fact recorded by the CIT(A) and by the Tribunal does not raise any question of law. This is particularly so as the revenue has not urged that the concurrent finding of fact are perverse. 5Accordingly, the appeal is dismissed, with no order as to costs. (M.S. SANKLECHA, J.) (J.P.DEVADHAR, J.)