https://www.taxtmi.com/caselaws?id=275718 Land held as stock in trade was treated as business inventory, so capital gains provisions and the statutory concept of transfer were inapplicable to any notional profit arising from the development agreement. For business income, the assessee obtained only a future right to receive and sell constructed area, and profit could arise only when that right was exercised and realised. The accepted rule of valuation requires closing stock to be taken at cost or market value, whichever is lower, and does not allow taxation of anticipated appreciation. The principles of conservatism, prudence, and the bar on taxing unrealised profits therefore prevent immediate assessment of the expected gain. en-us Mon, 30 Jun 2014 00:00:00 +0530 Tue, 24 Jun 2025 12:25:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275718 Land held as stock in trade was treated as business inventory, so capital gains provisions and the statutory concept of transfer were inapplicable to any notional profit arising from the development agreement. For business income, the assessee obtained only a future right to receive and sell constructed area, and profit could arise only when that right was exercised and realised. The accepted rule of valuation requires closing stock to be taken at cost or market value, whichever is lower, and does not allow taxation of anticipated appreciation. The principles of conservatism, prudence, and the bar on taxing unrealised profits therefore prevent immediate assessment of the expected gain. Case-Laws Income Tax Mon, 30 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275718