29 July 2011
Can anybody please tell me that if we have purchased a urban land few years back as an investment . and now we are proposing to use it for industrial purpose but no such initiative has started till the valuation date . In this case can we claim exemption for 2 years for such land as such the land to be used for industrial purpose. and
My second query is can we claim the deduction for such land as held for stock in trade?
In both of the above cases this land is shown as urban lands in the previous years in the wealth tax return.
28 August 2011
In the absence of any such initiative, so that the land could be termed as "for Industrial purpose" as on the v. date...it will be continued to be assessed as an asset under the Wealth Tax Act. . In case the assessee is dealing in land and is showing profit on the said basis, can only say that the land is stock in trade. In normal circumstances, it is difficult to convince the department.
CAclubindia
