Sale of Land As Fixed Asset in Real Developer’s Balance Sheet Can Still be Capital Gain & Not Business Income !

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sale-of-landCan a person who is involved in real estate business  claim capital gains on a land shown under fixed asset in his/its balance sheet ? I believe there maybe many real estate developers , facing similar questions from  tax department  during scrutiny proceeding. Therefore , this post is devoted to explain that neither the fact that the assessee is involved in business of real estate nor the fact that the memorandum or association of company carrying such real estatebsuienss mention real estate business as  its object  , can take away the right of assessee of computing the capital gains on the sale of land shown as fixed asset in the balance sheet , if such a capital asset was always held by the assessee as investment and not as as stock-in-trade.

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