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2022 (6) TMI 1369 - AT - Income Tax
Capital gain - Transfer of right in asset - land was converted into stock in trade in earlier assessment year - agreement between the assessee and Unitech is not an agreement for sale and there is no consideration - HELD THAT:- Where assessee converted his land into stock in trade and thereafter a development agreement was entered into by the assessee with the developer, the capital gain arising from the conversion of land into stock in trade is assessable in the previous order in which the property is sold by the assessee and not in the year of development agreement.
We are of the firm belief that the assessee has not transferred his right to Unitech there is no transfer of any right in title or interest in stock in trade during the year under consideration and hence no income accrues to the assessee we, therefore, decline to interfere with the findings of the CIT(A). The appeal filed by the revenue is accordingly dismissed.