https://www.taxtmi.com/caselaws?id=456459 ITAT Bangalore held that sale proceeds from unutilized industrial land allotted by KIADB constituted business income rather than capital gains. The assessee initially treated the 12-acre land as a fixed asset but later subdivided it into smaller plots with approach roads when unable to find buyers for the entire parcel. The tribunal applied section 45(2) of the Income Tax Act, recognizing conversion of capital asset to stock-in-trade. The fair market value at conversion date would be assessed as capital gains, while excess sales realization over fair market value would be taxed as business income. Decision went against the assessee. en-us Fri, 18 Feb 2022 00:00:00 +0530 Sat, 27 Jul 2024 07:29:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456459 ITAT Bangalore held that sale proceeds from unutilized industrial land allotted by KIADB constituted business income rather than capital gains. The assessee initially treated the 12-acre land as a fixed asset but later subdivided it into smaller plots with approach roads when unable to find buyers for the entire parcel. The tribunal applied section 45(2) of the Income Tax Act, recognizing conversion of capital asset to stock-in-trade. The fair market value at conversion date would be assessed as capital gains, while excess sales realization over fair market value would be taxed as business income. Decision went against the assessee. Case-Laws Income Tax Fri, 18 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456459