https://www.taxtmi.com/caselaws?id=380826 Land restricted by a defence notification was treated as a capital asset despite being shown in the books as stock-in-trade, because tax character depends on the true nature of the asset and the surrounding legal restrictions, not on accounting entries alone. The inability to carry out any development activity supported the view that the land was never practically available for trading use. The original acquisition date remained relevant for the holding period, so the transfer was accepted as giving rise to long-term capital gain or loss. en-us Mon, 27 May 2019 00:00:00 +0530 Tue, 28 May 2019 18:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380826 Land restricted by a defence notification was treated as a capital asset despite being shown in the books as stock-in-trade, because tax character depends on the true nature of the asset and the surrounding legal restrictions, not on accounting entries alone. The inability to carry out any development activity supported the view that the land was never practically available for trading use. The original acquisition date remained relevant for the holding period, so the transfer was accepted as giving rise to long-term capital gain or loss. Case-Laws Income Tax Mon, 27 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380826