Transfer of land held as stock on HUF partition not amounts to conversion into Capital Asset

CIT Vs C. Ramaiah Reddy (Karntaka High Court) The issue under consideration is whether land held as stock, transferred upon HUF-partition, tantamount to conversion into ‘capital asset’ for the purpose of imposing a capital gain tax? ITAT states that the clear wording of the Memorandum of Family Arrangement and Oral Partition, they are of the considered view that the assessee was allotted the family’s real estate business. ITAT, therefore, hold that the assessee, on partition of the joint family, had received the balance capital of the family in the real estate business comprising...