Autodidact/Curious
638 Points
Posted on 12 March 2018
If you are in regular business of developing Real estate properties/civil construction etc then this developed property can be treated as "Stock in trade" and not as Capital asset...so any income arising out of it will come under PGBP (profits and gains of business or profession).
Allahabad High Court in the case of CIT vs. Kan Construction And Colonizers P Ltd. 70 DTR 169 (All) and Madras High Court in the case of CIT vs. Thiruvengadam Investments P Ltd. 320 ITR 345 (Mad) held that Section 50C has limited applicability to capital gains’ assessment and can not apply to assessee holding land or building as trader (stock in trade) and assessed for the same under the head “Income from business”.