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Tag Archives: Capital Gain Tax

B.C.Srinivasa Setty (SC)

The cost of acquisition of a self generated asset is not determinate, Therefore, capital gains not possible to be computed when a self generated asset is transferred.Hence ,no capital gains will arise on the sale of self generated asset.The amount received will be a capital receipt not chargeable to income tax.

Bai shrinbai k.Kooka(SC)

There is no transfer involved when an assesses converts a capital assets into stock in trade of the business carried on by him. The act of conversion is similar to taking out the money from on pocket and keeping the same in the other pocket of the same person.

The above judgment has been overruled w.e.f.Assessment year 1985-86 by an amendment in section 2(47) and section 45(2)

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