14 September 2011
Whether its capital gain or business gain? The asset i.e Land was never put to use, and it was sold within a period of 3 years. Although it was purchased with an intention of business, but business could not be started. And land was to be sold. Pls tell me whether AO will treat this as Capital gain or will it be treated as gain on sale of fixed assets (business profit)
14 September 2011
THE WHOLE THING DEPENDS UPON TWO FACTS 1. TREATMENT GIVEN IN THE B/S 2. THE NATURE OF BUSINESS CARRIED ON BY THE ASSESSEE PL SHARE THE DETAILS
14 September 2011
Sir, no business was done in the company. So it doesn't make any difference whatever be the nature of business of the company is. This is sure that nature of business was not of investment. But as the business was not done at all, the AO may treat this as investment. In BS, we have shown this under Fixed Assets 9with 0% rate of depreciation)
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