15 August 2010
An who is dealing in retail business, has a land value of Rs. 10,00,000/-, because of keen competition, assessee change his object of business to dealing in real estate business. Hence, assessee converted the land into current asset at market value and sold subsequently? Assessing officer, propose to tax this transaction u/s 45(2) as a conversion of capital asset into stock-in-trade. However, assessee contends it, land is a stock in trade with respect to change in object of business, hence not taxable.
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