Expected business profit on entering into development agreement in respect of land held as stock-in-trade cannot be taxed as capital gain

Brief of the case:

In this case ITAT examined the issue that where an assessee entered into an land development agreement by holding land as stock-in-trade, the expected business profits arose as a result of agreement can be taxed as income from capital gain. Hon’ble ITAT held that no matter how reasonable is it to assume that the assessee will make these profits and thus cannot be brought to tax at this stage.

Facts of the case:

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