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whether Capital gain or Business P/L?

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(Querist)
25 December 2008 on of my Client (Partnership Firm) acquired a Plots from GIDC costing say Rs.50 Lacs in the name of Partnership Firms Name for business purpose....but they are not starting their business due to financial crises for 2 more years....and firm decide to sold the land to third party.
Now question is that, land is not depreciable assets, and they sold it for say Rs.60 lacs..is it Capital gain or Business Income?..... during this two year firm has aslo paid some charges to GIDC for not starting business on Land, is this expesnes are deductable?
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CA Tilak Raj Sharma

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CA Tilak Raj Sharma (Expert)
25 December 2008 There is no doubt that it is a Capital gain, not business income.
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CA Tilak Raj Sharma

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CA Tilak Raj Sharma (Expert)
25 December 2008 These charges can be claimed as business expense but you cannot claim these against capital gain.
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CA RAMESH KUMAR AHUJA

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CA RAMESH KUMAR AHUJA (Expert)
25 December 2008 Capital gain
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