Income from Sale of Land held as Stock for 13 years is Business Income

Kohli Estates Pvt. Ltd. Vs ITO (ITAT Delhi) The issue under consideration is whether the CIT(A) is correct in confirming an addition of by treating sale of land as business income against the appellant’s claim as ‘Long Term Capital Gain’? ITAT states that, the assessee has always shown it as closing stock of agricultural land in the balance sheets. The contention of the assessee that it has always been shown at cost while in stock-in-trade it is always at cost or market price whichever is lower. The arguments of the assessee that since the land have been always valued at cost...