COMMISSIONER OF INCOME TAX Vs. RAJ BRICKS INDUSTRY

JUDGEMENT

(1.) THE Revenue has preferred this appeal under s. 260A of the IT Act, 1961 (for short, "the Act") against the order of Industry 70, Ajit Nagar, Patiala, for the asst. yr. 2005 -06, proposing to raise following substantial questions of law :

(2.) THE assessee is a partnership firm and carries on business of running brick kiln. It derived income from sale of land earlier purchased. The land was sold on winding up of the firm. The said income was claimed to be income from capital gain. The AO, however, held the said income to be not from capital gain but from business, by treating the sale to be adventure in the nature of trade. On appeal, the CIT(A) reversed the view taken by the AO and held that income was covered by the heading of capital gains. Reliance was also placed on the judgment of Hon'ble Supreme Court in Raja Bahadur Kamakhya Narain Singh vs. CIT (1970) 77 ITR 253 (SC).

(3.) FINDING of the CIT(A) was upheld by the Tribunal. The finding of the Tribunal is as under :