https://www.taxtmi.com/caselaws?id=395535 Where land is held as stock-in-trade, mere execution of a joint development arrangement does not, by itself, trigger taxation of anticipated business profit. The taxable income arises only on realisation, such as when the constructed villas are actually sold and the right under the arrangement is monetised. The transfer provisions applicable to capital assets were inapplicable because the land was not a capital asset. Applying prudence and conservatism in closing stock valuation, unrealised profits could not be brought to tax in the year of agreement execution. en-us Fri, 21 Feb 2020 00:00:00 +0530 Wed, 27 May 2020 11:20:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395535 Where land is held as stock-in-trade, mere execution of a joint development arrangement does not, by itself, trigger taxation of anticipated business profit. The taxable income arises only on realisation, such as when the constructed villas are actually sold and the right under the arrangement is monetised. The transfer provisions applicable to capital assets were inapplicable because the land was not a capital asset. Applying prudence and conservatism in closing stock valuation, unrealised profits could not be brought to tax in the year of agreement execution. Case-Laws Income Tax Fri, 21 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395535