Transfer of land would be treated as capital asset instead of stock in trade if no construction or business activity carried on same

M/s. AJB Developers Pvt. Vs DCIT (ITAT Delhi)

Conclusion:

Where land was stock in trade in the books of account, but, there was a complete bar on assessee as per the Notification of the Ministry of Defence to raise any construction or to do any business activity therein, the land in question could not not be treated as stock in trade but as a capital asset in nature determining holding period from the date of acquisition.

Held:

Assessee sold

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