Case Number: ITA 746/DEL/2019
Appellant: Vaijanti Jain, Delhi
Respondent: ITO, Ward-40(3), New Delhi
Assessment Year: 2013-14
Result: Favorable to Appellant
Case Filed On: February 1, 2019
Order Type: Final Tribunal Order
Date of Order: January 30, 2023
Pronounced On: January 30, 2023
The case ITA 746/DEL/2019 involves the appellant, Vaijanti Jain, challenging the assessment made by the respondent, ITO, Ward-40(3), New Delhi, for the assessment year 2013-14. The appellant filed the case on February 1, 2019, and the final order was pronounced on January 30, 2023.
Vaijanti Jain, a resident of Delhi, filed her income tax return for the assessment year 2013-14, declaring a total income of Rs. 3,55,190. The case was selected for scrutiny, and the Assessing Officer (AO) observed that Jain had claimed capital gains from the sale of properties. However, the AO held that these gains should be treated as business income, leading to a substantial reassessment of her income.
During the proceedings, the appellant, represented by Ms. Rano Jain, Adv., and Ms. Mansi Jain, CA, argued that the properties sold were held as investments and not as stock-in-trade. They contended that the capital gains should not be reclassified as business income. The respondent, represented by Shri Sumesh Swani, Sr. DR, supported the AO’s decision, asserting that the frequent transactions indicated business activity.
The tribunal, presided over by Judicial Member Shri Kul Bharat, reviewed the case. The main issue was whether the gains from the sale of properties should be classified as business income or capital gains. The tribunal considered the following points:
The tribunal referred to several key judicial precedents that reinforced the appellant’s position:
The tribunal concluded that the authorities below had erred in treating the transactions as business activities. The tribunal directed the AO to delete the impugned addition and accept the appellant’s classification of the gains as capital gains. The decision underscored the importance of the intent behind property transactions and the need for a thorough examination of each case’s specifics.
Order Pronounced in the Open Court on 30th January, 2023
Signatures:
(Kul Bharat, Judicial Member)
Date: 30/01/2023
Copy forwarded to:
Assistant Registrar
ITA 746/DEL/2019: Vaijanti Jain vs ITO, Ward-40(3), New Delhi – Assessment Year 2013-14
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