Proportionate computation of capital gains related to stock-in-trade sold during relevant year on conversion of capital asset into stock-in-trade

Ishoo Narang Vs DCIT (ITAT Hyderabad)

Conclusion: Capital gain arising on account of conversion of capital asset into stock-in-trade should be proportionately computed by considering the stock-in-trade sold by the assessee and not the entire extent of land converted by the assessee, therefore, proportionate capital gain liable for taxation in the impugned A.Y.

Held: During the course of assessment proceedings, AO noticed that on verification of the return of income for the A.Y 2015-16, it was seen that the opening stock was shown at Rs.17,98

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