Conversion of stock in trade into capital asset

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..... Conversion of stock in trade into capital asset
Query (Issue) Started By: - manoj gupta Dated:- 28-6-2010 Last Reply Date:- 29-6-2010 Income Tax
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Income Tax
Conversion of capit .....

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..... al asset into stock in trade is treated as transfer taxable at the point of actual sale. what are the provisions for conversion of stock in trade into capital asset. Is it allowed under income tax.wha .....

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..... t are the sections containing provisions for this. May someone summarise the provisions. Reply By DEV KUMAR KOTHARI: The Reply: There should be justifiable reasons of conversion of capital asset into .....

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..... stock in trade and not simpoly to reduce tax liability by claiming business loss or set off of b/f business loss agaisnt business income or in some other manner. In that case bonafide of conversion w .....

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..... ill be doubted. the relevant factors can be the period of holding of capital asset, subsequent development in busines sof particualr item or group of items. See speciofic section 45(2) and general p .....

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..... rovisions of 28,29, 145 , mmethod of accounting adopted by assessee etc.
Discussion Forum - Knowledge Sharing .....

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