D. Jayaraman v. ACWT (2021)90 ITR 81 (SN)(Chennai) (Trib)

Wealth tax Act, 1957.

S. 2(e)(a): Assets – Stock in trade -Entries in books of account not relevant to decide nature of asset –Lands held as stock in trade – Not liable to be assessed as assets liable to be wealth -tax Act . [ S. 17 ]

Held that  entries in the books of account are not relevant criteria to decide the nature of asset or income or expenses . What is relevant is the nature of assets and intention of the assessee to hold such assets in the business of the assessee. From the intent and conduct of the assessee, it was clear that those lands were held in the business of the assessee as stock-in-trade and further, profits derived from sale of the land were rightly assessed under the head income from business or profession. The Assessing Officer having accepted the income declared from sale of land under the head profits and gains from business erred in considering those lands as investments under the definition of assets under section 2(ea) of the Act,.( AY. 2008-09, 2009-10) 

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