Assessee was allotted 12 acres of industrial land for hospital project on lease-cum-sale basis. Assessee used only 3 acres of land in two years and was incurring losses and was also bearing interest charges on loan taken to buy said land, hence, it sold land in small plots.  Assessee offered sale consideration received for sale of land as long-term capital gains (LTCG).  Assessing Officer held that sale of land was business transaction which was used to recover business loss and treated sale consideration received as business income. CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that capital asset (land) which was so purchased initially was converted or treated as stock-in-trade of business by assessee. Accordingly the  assessee was to be granted benefit of section 45(2) and capital gains was to be computed upto date of conversion into stock-in-trade and for period thereafter sales realization of stock-in-trade over fair market value of asset (land) was to be assessed as  business income.  (AY. 2014-15)