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

Last updated: 09 October 2021

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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)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 1442821_4523_1633342165_ita_nos_387__262_acit_vs_gloabl_herigate.pdf

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Judgement posted by

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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