https://www.taxtmi.com/caselaws?id=261087 Where land is converted into stock-in-trade, capital gains are stated to arise under section 45(2) only on actual sale or transfer of the converted stock, not merely on execution of a development agreement or handing over possession for development purposes. For valuation, the fair market value as on 1.4.1981 should be determined on proper evidence and valuation machinery rather than by an untested circle rate or an inadequately adjusted comparable sale. A disallowance under section 14A read with rule 8D is stated to require prior objective dissatisfaction recorded from the accounts before the prescribed computation method is applied. en-us Tue, 23 Jun 2015 00:00:00 +0530 Thu, 02 Jul 2015 06:08:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261087 Where land is converted into stock-in-trade, capital gains are stated to arise under section 45(2) only on actual sale or transfer of the converted stock, not merely on execution of a development agreement or handing over possession for development purposes. For valuation, the fair market value as on 1.4.1981 should be determined on proper evidence and valuation machinery rather than by an untested circle rate or an inadequately adjusted comparable sale. A disallowance under section 14A read with rule 8D is stated to require prior objective dissatisfaction recorded from the accounts before the prescribed computation method is applied. Case-Laws Income Tax Tue, 23 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261087