Profit/ loss on sale of land held as stock-in-trade is assessable under Income from business or profession

Shrijee Developers Ltd. Vs ITO (ITAT Chennai) ITAT Chennai held that profit or loss derived from sale of land held as stock-in-trade is assessable under the head ‘income from business or profession’ and not under ‘capital gains’. Facts- During AY 2003-04, the assessee company had transferred a land at Vadapalani to M/s.Macro Marvel Projects Ltd., Chennai, for a consideration of Rs.2.46 crs. and computed long term capital loss at Rs.10,58,177/- after claiming indexed cost of acquisition. AO noticed that the assessee main business activity is construction and real estate development and ...