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2021 (9) TMI 276 - AT - Wealth-taxProperties considered for wealth tax purposes - four properties were treated as stock-in-trade and profits from sale of said properties has been offered to tax under the head ‘income from business’, thus not included under wealth tax - HELD THAT:- When the Assessing Officer has accepted profits earned from sale of said assets as income assessable under the head ‘income from business or profession’, then there is no reason for the Assessing Officer to treat said assets as investments only for the reason that those assets are not classified as stock-intrade in books of account of the assessee. It is well settled principles of law by the decision of various courts, as per which entries in the books of account is not relevant criteria to decide nature of asset or income or expenses, but what is relevant is 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 very clear that those lands were held in the business of the assessee as stock-in-trade and further, profits derived from sale of said land was rightly assessed under the head income from business or profession. The Assessing Officer having accepted income declared from sale of land under the head profits & gains from business, was erred in considering those lands as investments which falls under the definition of assets u/s.2(e)(a) of the Wealth Tax Act, 1957, and to charge for wealth tax. Therefore, the Assessing Officer as well as learned CWT(A) completely erred in considering assets held as stock-in-trade within definition of assets for the purpose of wealth tax. The Assessing Officer is directed to delete four assets as claimed by the assessee as stock-in-trade for the purpose of wealth tax - appeal filed by the assessee for both assessment years are allowed.
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