Can a capital asset be treated as stock in trade by a real estate company?

Last updated: 09 October 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) has ruled on whether a real estate company can classify its capital assets as stock in trade. The tribunal noted the consistent stance of the revenue department in previous assessment years, which had accepted the construction of a hotel as a capital work in progress, not stock in trade. Ultimately, the revenue's appeal was dismissed.

Court :
ITAT Delhi

Brief :
These two appeals are filed by the Revenue against order dated 31.05.2016 passed by CIT(A)-23, New Delhi for Assessment Year 2012-13 and order dated 30.05.2017 passed by CIT(A)-24, New Delhi for Assessment Year 2013-14.

Citation :
I.T.A. No. 262/AGRA/2016 (A.Y 2012-13)

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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