DCIT, Circle 4 (2), vs. Cyberwalk Tech Park Pvt. Ltd.

Parties Involved

Facts Summary

The Revenue has filed an appeal against the order of the Learned Commissioner of Income Tax (Appeals), Delhi-31 dated 25.11.2024 for the Assessment Year 2012-13. The assessee was allotted land measuring 38212 sq mtrs. in Manesar by HSIIDC for development of majority IT/ITES space with a small percentage of residential and commercial space. The assessee converted 50% of the land into stock in trade and continued to hold balance 50% into fixed assets. The fair market value on the date of conversion of land into stock in trade was the same as cost, there was no appreciation of land in the market. The assessee sold part of the area on percentage completion method by assuming 90.6% completion in Tower E and about 93.3% completion in Tower D.…

Legal Issues

• 1. Conversion of land from capital asset to stock in trade and computation of capital gains and business profit.

Judgment Outcome

Decided in favour of Assessee.

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