Monthly Archives: January 2016

Taxability of Conversion of Stock in trade to Investment

Taxability of Conversion of Stock in trade to Investment
In case of a business of trading in shares assessee may transfer some of his stock in trade into his capital asset by deciding to hold it as an investment or on discontinue of delivery based trading of shares, convert the stock of shares into investments

Powers of the A.O. are not plenary or unbridled

Powers of the A.O. are not plenary or unbridled
1. INTRODUCTION
Recently, I had an occasion to deal with a case, where no notice under section 143(2) of the Income‑Tax Act, 1961 (the Act), was served on the assessee, within the stipulated period. But after the expiry of the aforesaid period, the Assessing Officer (AO)

Whether MAT applicable to share of a company in income of a joint venture business

Whether MAT applicable to share of a company in income of a joint venture business
1. Introduction
We have been witnessing a new and different trend in relation to the real estate development. Earlier, a builder would go for outright purchase of a piece of land from the landlord and develop the same at his

Profit on Sale of Share immediately after conversion from Stock in Trade to Investment is Business Income

Profit on Sale of Share immediately after conversion from Stock in Trade to Investment is Business Income
lndo Stosec (P.) Ltd. vs. lncome-Tax Officer (ITAT Mumbai), Appeal No. I.T.A.No.3472/Mum/2010, Date of Pronouncement : 20.8.2014, Assessment Year: 2006-07
The assessee is engaged in the business of manufacture of Gas mantle and stove. Besides the assessee was

No Legal Bar on conversion of Stock in Trade to Investment

No Legal Bar on conversion of Stock in Trade to Investment
ACIT vs. M/s. Superior Financial Consultancy Services (ITAT Mumbai), Appeal No. ITA No. 4208/Mum/2007, Date of Pronouncement : 06.03.2013, Assessment Year: 2004-05
Briefly stated, the assessee, a private limited company, engaged in the business of borrowing and lending funds reflected stock-in-trade of Rs.8,30,95,223.15 in