Capital gain arising from conversion of land into stock in trade is assessable in year of sale

DCIT Vs Karma Lakelands Pvt. Ltd (ITAT Delhi) The undisputed fact is that nothing has happened during the year under consideration, the impugned land was converted into stock in trade in earlier assessment year. It is not in dispute that the agreement between the assessee and Unitech is not an agreement for sale and it is not in dispute that there is no consideration. In our opinion where assessee converted his land into stock in trade and thereafter a development agreement was entered into by the assessee with the developer, the capital gain arising from the conversion of land into stock in t...