Allowing the appeal of the assessee the Tribunal held that ; Transfer of land to developer for construction of commercial complex and letting the flats which it got from developer and offering the income as rental income , subsequent sale of flats was held to be assessable as capital gains and cannot be assessed as business income by applying the provision of S. 45(2) of the Act . ( AY. 2006 -07 to 2010-11)
Vikas Solvextracts (P.) Ltd. v. DCIT (2018) 168 ITD 692/192 TTJ 591 / 164 DTR 161 (Kol) (Trib.)
S. 45 : Capital gains – Stock in trade -Transfer of land to developer for construction of commercial complex and letting the flats which it got from developer and offering the income as rental income , subsequent sale of flats was held to be assessable as capital gains and cannot be assessed as business income by applying the provision of S. 45(2) of the Act . [ 28(i), 45(2)]