Dear Experts,
kindly help me with the following matter:
1)Our client purchased a Land for development purpose into Commercial building and further selling the shops.
2) As per accounting concept we always put capital asset in balance sheet and don't show those item into profit loss
3) A section in Direct tax says that if you convert Capital asset into stock in trade then you have to pay Cap Gain
4) So I fear that ITO will say that you have converted the Land into that building/flats(which is stock in trade) and you have to pay cap gain !! We all know that if you have to buy land for development purpose and land can never be shown as stock.
kindly help me with this matter
CAclubindia
