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2022 (12) TMI 428 - AT - Income TaxLong term capital gain - year of assessment - As argued that the impugned capital gains ought not to have been assessed in the year when the assessee had converted his capital asset(s) to stock-in-trade - HELD THAT:- Assessee’s argument fails to inspire any acceptance as section 45(2) is a specific provision wherein capital gains arising from such a conversion are assessed in the year of actual transfer of the stock-in- trade. We thus uphold the learned lower authorities’ action; more, particularly the CIT(A)’s action assessing the impugned long term capital gains in assessee’s hand to the tune of Rs.8,64,068/- than the entire sale consideration amounting to Rs.74,55,088/- (supra). CIT(A)’s jurisdiction in arriving at the correct computation of an assessee’s taxable income - Bifurcation of long term capital gains’ computation to business income to the extent of business profits - We find no merit in the Revenue’s instant arguments in light of CIT vs. Shapoorji Pallonji Mistry [1962 (2) TMI 12 - SUPREME COURT], CIT vs. Union Tyers [1999 (9) TMI 81 - DELHI HIGH COURT] and CIT vs. M/s. Sardari Lal & Company [2001 (9) TMI 1130 - DELHI HIGH COURT] that the CIT(A)’s jurisdiction does not extend to introducing an altogether new source of income as it has been done in the facts of the instant case. Faced with this situation, we accept the assessee’s vehement arguments challenging business profits addition.
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