https://www.taxtmi.com/caselaws?id=358383 Property inherited by intestate succession under section 8 of the Hindu Succession Act is the absolute property of the heir and does not become HUF property merely because it was ancestral in origin. Applied here, the inherited land was assessable in the assessee's individual capacity. Where that land was later developed into residential plots, provided with access roads, and sold over time, the Tribunal treated the activity as a business conversion of the asset into stock-in-trade. On that basis, section 45(2) governed taxation: fair market value at conversion was relevant for capital gains, and the surplus on sale over that value was business income, with recomputation directed accordingly. en-us Tue, 27 Feb 2018 00:00:00 +0530 Wed, 11 Apr 2018 08:02:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358383 Property inherited by intestate succession under section 8 of the Hindu Succession Act is the absolute property of the heir and does not become HUF property merely because it was ancestral in origin. Applied here, the inherited land was assessable in the assessee's individual capacity. Where that land was later developed into residential plots, provided with access roads, and sold over time, the Tribunal treated the activity as a business conversion of the asset into stock-in-trade. On that basis, section 45(2) governed taxation: fair market value at conversion was relevant for capital gains, and the surplus on sale over that value was business income, with recomputation directed accordingly. Case-Laws Income Tax Tue, 27 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358383