Man gets flats under builder deal, transfers 5 to wife; gets Rs 4.14cr tax notice

You enter into an agreement with a builder for your land and later transfer five flats from it to your wife. Is a capital gains tax applicable?In one such case, the Income Tax Appellate Tribunal (ITAT), Delhi Bench, has deleted tax additions of Rs 4.14 crore made against a taxpayer after the income tax department treated a joint development agreement as conversion of land into stock-in-trade and later treated the transfer of five flats to his wife as a sale giving rise to business income.What the case is aboutA man had filed his income tax return for assessment year 2021-22 declaring total income of Rs 1,05,59,170. His case was selected for complete scrutiny.The assessing officer made two major additions. The first, Rs 1,93,78,293, was treated as long-term capital gains on the ground that the man had converted a capital asset into stock-in-trade.