AO cannot adopt different Valuation Method for Capital Gains & Business Income: ITAT Delhi

Advertisement DCIT Vs Cyberwalk Tech Park Pvt. Ltd. (ITAT Delhi) The Income Tax Appellate Tribunal, Delhi examined whether the Assessing Officer could apply two different values to the same land converted from a capital asset into stock-in-trade under Section 45(2) of the Income-tax Act. The assessee had converted 50% of its land into stock-in-trade at cost, as the fair market value (FMV) on the date of conversion was equal to the original cost, and later sold constructed units by applying the percentage completion method, offering the resulting income as business income. The Assessing Offi...