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2023 (2) TMI 794 - ITAT CHENNAIComputation of LTCG - provisions of section 2(47)(v) applicability - assessee’s property is converted as stock-in-trade - CIT(A) considered the arbitral award and noted that the assessee had to sell only 40 grounds and 1896 sq.ft. for a consideration and not the entire land for the consideration stated in the sale agreement - HELD THAT:- Once the property is converted into stock-in-trade by the assessee and which is undisputed fact and not disturbed by Revenue by rejecting the method of accounting adopted, the Revenue cannot assess the same as capital gains and this is to be assessed as business income. Even the sale is not compete and even the sale deed is not executed in this case till date as confirmed by the ld.AR for the assessee by making statement at bar. He made categorical statement that assessee is yet to transfer the land by executing sale deed. CIT(A) has erred in upholding the part consideration as capital gains qua 40 grounds and 1896 sq.ft. for a sale consideration of Rs.170 crores. We reverse the order of CIT(A) and allow this appeal of assessee. Consequently, the appeal of Revenue is dismissed.
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