S. 50C does not apply to land & building held as ‘stock-in-trade’

CIT vs. Kan Construction And Colonizers (P) Ltd (Allahabad High Court)

The assessee sold a plot of land for Rs. 79 lakhs. The AO held that the said plot was a capital asset and that the gains had to be computed in accordance with s. 50C. The CIT (A) & Tribunal upheld the assessee’s claim that as the said plot was held as stock-in-trade, s. 50C did not apply. On appeal by the department to the High Court, HELD dismissing the appeal: