Capital gain or business income

This query is : Resolved

Tazin (Querist)
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18 November 2014 sir my client had purchased a plot in the year 2013-14 n entered into partnership firm xyz builders n developers with his son n his wife. He constructed n sold a residential house on the plot n sold it in the same year on his own account. Now he wants the income to be charged u/s 44 ad n not as capital gain on the ground that he runs business under the firm ad a partner. pleade guide me in this matter. thanks a lot

Amol S Joglekar

Amol S Joglekar (Expert)
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18 November 2014 There are 2 parts to this.
01. Conversion of PLOT of land into stock in trade shall be governed as per sec 45(2), 45(3) and 45(4)as the case may be.
02. For the sale of constructed property, he can very well go by sec 44AD.