Sale of Plots May Be Business Income, Not Capital Gains- AO to Verify Whether Land is Stock-in-Trade or Capital Asset: Ahmedabad ITAT Restores Matter

Kajal Co-op Housing Society Limited Vs ITO (ITAT Ahmedabad)

Assessee, Kajal Co-operative Housing Society Ltd, engaged in development & sale of residential plots, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi for AY 2013-14.

AO treated the sale proceeds of land/plots as capital gains, applying Section 50C for valuation substitution, & made an addition of ₹1,10,76,786 on the difference between the sale consideration & the stamp duty value. The AO also denied deduction for development expenses & added interest income of

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