Land earmarked for public utility purpose cannot be taxed either as capital gain or as business income

ACIT Vs Smt. Sarojini B. Nair (ITAT Chennai) Held that the land earmarked for public utility purpose in terms of municipal regulations while forming residential lay out, cannot be brought to tax either u/s.47(iii) of the Income Tax Act or u/s.45(2) of the Income Tax Act Facts- During the course of assessment proceedings, AO noticed that the assessee has converted investment into stock-in-trade as per s.45(2) of the Act. AO further noted that the assessee had earmarked 40,386.81 sq.ft. land for common amenities like road, parks, etc., in terms of municipal regulations. The assessee claimed that...