Please give your expert advices on my this query.
Our one client which is a REAL ESTATE COMPANY had bought some land 10 years ago. They shown it as a INVESTMENT (instead of STOCK in TRADE). Now, they have sold the same investment in Previous Year (2011-12) and filled ITR on the basis of LONG TERM CAPITAL GAIN.
Now, the case is in scrutiny and INCOME TAX DEPARTMENT is asking, "WHY NOT TO TREAT THE ABOVE LTCG AS PROFIT AND GAIN FROM BUSINESS"?
Kindly, reply with facts and supportings, how to respond IT DEPARTMENT for their query?
Thanks with expectations.