Deepak Khandelwal Vs. JCIT, Range-1

Parties Involved

Facts Summary

Deepak Khandelwal, the assessee, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals), Bilaspur (C.G.), dated 08.10.2018, which arose from the order passed by the Assessing Officer under Section 147/143(3) of the Income-tax Act, 1961 for the assessment year 2012-13. The assessee had sold lands at Village Sakri for a sale consideration substantially lower than its market value. The Assessing Officer reopened the case under Section 147 of the Act and recomputed the capital gains. The assessee claimed that the sale of the lands was a sale of stock-in-trade and not a capital asset, and thus, the income should be assessed under the head 'Profit and Gain of Business or Profession'. The Assessing Officer and the Commissioner of Income Tax (Appeals) rejected the assessee's claims.…

Legal Issues

• 1. Whether the lower authorities are right in law and on facts in declining the claim of the assessee that the gain/accretion on sale of the lands in question was to be assessed under the head 'Profit and Gain of Business or Profession'.
• 2. Whether the lower authorities had rightly declined the assessee's claim for deduction u/s.54B of Rs.18 lac w.r.t his claim of purchase of land at Village-Duraghat.
• 3. Whether the lower authorities have rightly triggered the provisions of section 50C of the Act for re-computing the capital gains on sale of land in question in the hands of the assessee.

Judgment Outcome

Decided in favour of Assessee.

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