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The Tax Publishers ITO v. Mid Land Projects Ltd. [ITA No. 505/Kol/2012, dt. 6-4-2016] : 2016 TaxPub(DT) 2127 (Kol-Trib) Capital gains or business income *Facts:* Assessee in real estate business had amalgamated its group companies by virtue of which they came into possession of a piece of office unit which was held as stock-in-trade in the amalgamating company. Another adjacent office unit also arising from the amalgamating company was shown as fixed assets in the Amalgamated books as they were held thus on status quo basis. During the year the assessee sold both units, thus segregated the gains as business income for the stock-in-trade and for the fixed asset (investment) unit disclosed it as capital gains. Assessing officer substituted the stamp value for the stock in trade unit under section 50C and taxed it as capital gains ignoring the views of the assessee that they were stock in trade and section 50C does not apply to stock in trade. The said plea was accepted by the Commissioner (Appeals). On further appeal by the department: Held in favour of the assessee dismissing departmental appeal the orders of the Commissioner (Appeals) require no disturbance.

The Tax Publishers

ITO v. Mid Land Projects Ltd. [ITA No. 505/Kol/2012, dt. 6-4-2016] : 2016 TaxPub(DT) 2127 (Kol-Trib)

Capital gains or business income

Facts:

Assessee in real estate business had amalgamated its group companies by virtue of which they came into possession of a piece of office unit which was held as stock-in-trade in the amalgamating company. Another adjacent office unit also arising from the amalgamating company was shown as fixed assets in the Amalgamated books as they were held thus on status quo basis. During the year the assessee sold both units, thus segregated the gains as business income for the stock-in-trade and for the fixed asset (investment) unit disclosed it as capital gains. Assessing officer substituted the stamp value for the stock in trade unit under section 50C and taxed it as capital gains ignoring the views of the assessee that they were stock in trade and section 50C does not apply to stock in trade. The said plea was accepted by the Commissioner (Appeals). On further appeal by the department:

Held in favour of the assessee dismissing departmental appeal the orders of the Commissioner (Appeals) require no disturbance.