HC to decide whether short term capital gains can be business income

The Bombay high court last week admitted an appeal filed by the Commissioner of Income Tax - 5 in Mumbai on an important point of law. The HC bench of Justices J P Devadhar and M S Sanklecha in an appeal filed by the IT commissioner against a real estate developer SKM Construction Private Limited will decide on whether the the Income Tax Tribunal was was justified in confirming the order of the CIT (A) which held that the assessee who is in the business of construction and development is liable to be assessed on the sale of TDR which has accrued to him many years after the purchase of and as capital gain and not as business income?

The HC also framed other substantial questions of law including whether on on the facts and in the circumstances of the case and in law the Tribunal was justified in holding that the profit earned on sale of TDR is taxable as capital gains as against business income without considering the fact that the assessee act of selling TDR in the open market tantamount to adventure in the nature of trade and profit taxable as business income ? The HC will also decide whether short term capital gaims should be treated as business income.


Keywords: Bombay high court , Commissioner , Income Tax , HC bench ,Justices J P Devadhar , M S Sanklecha, IT commissioner,SKM Construction Private Limited , Income Tax Tribunal, TDR ,business income,open market ,Business news