COMMISSIONER OF INCOME TAX Vs. R.V.GUPTA

JUDGEMENT

(1.) THIS is an appeal by the Revenue under S. 260A of the IT Act, 1961 (for short 'the Act') against the order of the Income tax Appellate Tribunal, Delhi Bench A, Delhi. (for short 'the Tribunal') dt. 21st Nov., 2001, passed in ITA No. 7077/Del/1994. Pertaining to the asst. year 1991 92, for determination of the following questions of law :

(2.) BRIEFLY stated, the material facts giving rise to the present appeal are :

(3.) AGGRIEVED , the assessee preferred appeal before the Commissioner of Income tax (Appeals) [for short the CIT(A)], who came to the conclusion that it was not a case of adventure in the nature of trade. While holding so the CIT(A), inter alia, noticed that the plot of land was retained by the assessee for 18 years and investment therein was shown in his wealth tax returns as investment in plot; there was no change in the said plot from 1971 to 1989; he was not permitted by the DDA to sell a portion to land and to meet the cost of construction, it became necessary for the assessee to construct the flats. The CIT(A), accordingly directed the AO to compute the income from sale of the flats are long term capital gains.