LTCG on conversion of investment to stock-in-trade taxable in the year of Sale

Advertisement DCIT Vs Avinash Kantilal Jain (ITAT Pune) That where the investments are converted into stock-in-trade, the difference between the market value of the investments as on date of conversion and the cost of investments is assessable under the head long term capital gains and taxable in the year in which such securities were sold as a part of the stock-in-trade. Facts- The respondent-assessee is engaged in the business of manufacturing of Solvent Cement. The ROI for AY 2008-09 was filed declaring a loss of Rs.32,50,240/-. Commissioner of Income Tax passed order u/s 143(3) at a tot...