Embezzlement losses in charitable institutions remain allowable when misappropriation is established, irrecoverable, and not a specified-person benefi...
National long-distance undertaking status supports deduction where separately licensed infrastructure, resources, revenue, and expenditure establish c...
Agency reimbursement income follows contractual deposit-liability computation, while pending deposit collections do not constitute deemed-dividend loa...
Membership-consent thresholds for oppression petitions are satisfied by unchallenged voter-list consents, while unsupported forgery claims require pro...
Taxability of business income from transfer of property held as...
Stock-in-trade transfer taxability follows possession and consideration, not later conveyance registration, limiting deemed-value provisions to the actual transfer year.
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Taxability of business income from transfer of property held as stock-in-trade arises when the transferee receives possession in part performance of a written agreement for consideration and remains willing to perform. Receipt of the full consideration and delivery of possession complete the transfer; later registration of a conveyance incorporating the earlier agreement is procedural and does not create a fresh transaction. Accordingly, the deemed-consideration rule for stock-in-trade applies only in the previous year of the completed transfer, not in a later year solely because the conveyance was registered then. Income is attributable to the earlier assessment year, and the later-year addition does not survive.
Taxability of business income from transfer of property held as stock-in-trade arises when the transferee receives possession in part performance of a written agreement for consideration and remains willing to perform. Receipt of the full consideration and delivery of possession complete the transfer; later registration of a conveyance incorporating the earlier agreement is procedural and does not create a fresh transaction. Accordingly, the deemed-consideration rule for stock-in-trade applies only in the previous year of the completed transfer, not in a later year solely because the conveyance was registered then. Income is attributable to the earlier assessment year, and the later-year addition does not survive.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4888 
