Intention to exploit capital asset for business purpose shall be date of conversion of capital asset into stock-in-trade

Late Puran Ratilal Mehta Vs ACIT (ITAT Mumbai) Conclusion – Date of conversion of capital asset into stock-in-trade shall be determined either on the basis of entry passed in the books of account of the assessee or the intention of the assessee to exploit the capital asset into stock-in-trade for its business purpose. Capital gain on conversion of capital asset into stock in trade is payable only in the year in which the assessee ultimately sells such stock in trade. Facts – Date of conversion of capital assets into stock-in-trade and computation of capital gain thereon – AO contended th...