SEC 50 C
This query is : Resolved
CA M. ASIF FAROOQUI
(Querist)
18 June 2011
HI,
ONE OF MY CLIENT IS INDULGE IN REAL ESTATE BUSINESS.HE PURCHASE VACANT LAND & AFTER CONSTRUCTING A BUILDING OR FLAT ON IT,HE SELLS IT.
HE HAS PURCHASED MANY VACANT LAND FOR CONSTRUCTION PURPOSE.
SO I WANT TO ASK THAT IF HE WOULD SELL VACANT LAND (WITHOUT CONSTRUCTING ANY PREMISES ON IT),THEN WHETHER SEC 50 C OF INCOME TAX WOULD BE APPLICABLE OR NOT????
IN MY VIEW IT SHOULD NOT BE APPLICABLE BECAUSE VACANT LAND WILL BE HIS STOCK.
THANKS.
ONE OF MY CLIENT IS INDULGE IN REAL ESTATE BUSINESS.HE PURCHASE VACANT LAND & AFTER CONSTRUCTING A BUILDING OR FLAT ON IT,HE SELLS IT.
HE HAS PURCHASED MANY VACANT LAND FOR CONSTRUCTION PURPOSE.
SO I WANT TO ASK THAT IF HE WOULD SELL VACANT LAND (WITHOUT CONSTRUCTING ANY PREMISES ON IT),THEN WHETHER SEC 50 C OF INCOME TAX WOULD BE APPLICABLE OR NOT????
IN MY VIEW IT SHOULD NOT BE APPLICABLE BECAUSE VACANT LAND WILL BE HIS STOCK.
THANKS.
19 June 2011
Yes. As he is in construction business it should be consider as a stock in trade
CA Shyam Agrawal
(Expert)
19 June 2011
Friend hello.
What at the time of purchase your client showed it, as an investment or as stock in trade, accordingly case has to be deceided.
What at the time of purchase your client showed it, as an investment or as stock in trade, accordingly case has to be deceided.
CA M. ASIF FAROOQUI
(Querist)
21 June 2011
thanks....
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