Sunday, December 18, 2011

Compilations of case law : SALE OF LAND

INCOME – CHARGEABILITY AND COMPUTATION


SALE OF LAND



When a person acquires land with a view to selling it later, after developing it, he is carrying on activity resulting in profit and the activity can only be described as a business venture.


Raja J. Rameswar Rao Vs CIT (SC) 42 ITR 179



Joint purchase of land by 4 persons and joint sale thereof – Land fit only for house sites – Adventure in the nature of trade.


Smt. Parvathi Devi & Ors. Vs CIT (AP) 164 ITR 675



Purchase of large plot of land with a dilapidated building – sale after converting into smaller plots – No evidence that purchase of land made with intention to re-sell – Profit assessable as capital gain.


CIT Vs Mohammed Mohideen (Mad) 176 ITR 393



Sale of land after plotting – Business venture


CIT Vs R. Ramaiah & ors. (Kar) 146 ITR 39


P. Kannan Vs CIT (Kar) 154 ITR 441


Indramani Bai & Another Vs Addl. CIT (SC) 200 ITR 594


Addl. CIT Vs Chikkaveerayya Lingaiah (Kar) 164 ITR 41


Raja Rameswara Rao Bahadur Vs CIT (AP) 32 ITR 552; (SC) 42 ITR 179


G. Venkataswami Naidu & Co. Vs CIT (SC) 35 ITR 594.



Agriculturist purchasing lands in a series of transactions and selling them within a reasonably short period – adventure in the nature of trade.


Hemchand Hirachand Shah Vs CIT ( Guj ) 206 ITR 55



Land purchased had potentiality of being developed into building site – No agricultural operations were carried out on land by the assessee – Adventure in the nature of trade.


Badrilal Bholaram Vs CIT (MP) 139 ITR 207


CIT Vs B. Narasimha Reddy (Kar) 150 ITR 347


CIT Vs M. Krishna Rao (AP) 120 ITR 101


Sawandas Devram Vs CIT (MP) 150 ITR 576

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