https://www.taxtmi.com/caselaws?id=67975 Precious stones received on HUF partition retained their capital asset character, with holding period and cost base carried forward from the HUF under the applicable partition rules. Their later conversion into stock-in-trade did not trigger capital gains for the assessment year concerned because the deeming amendment treating such conversion as a transfer was not yet in force. Introduction of the assets into a genuine partnership firm also did not yield taxable capital gains, as the consideration was only notional and the computation provisions could not operate in the ordinary way. The department's appeal failed, and the assessee obtained partial relief. en-us Thu, 30 Jul 1987 00:00:00 +0530 Wed, 16 Mar 2011 11:39:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=67975 Precious stones received on HUF partition retained their capital asset character, with holding period and cost base carried forward from the HUF under the applicable partition rules. Their later conversion into stock-in-trade did not trigger capital gains for the assessment year concerned because the deeming amendment treating such conversion as a transfer was not yet in force. Introduction of the assets into a genuine partnership firm also did not yield taxable capital gains, as the consideration was only notional and the computation provisions could not operate in the ordinary way. The department's appeal failed, and the assessee obtained partial relief. Case-Laws Income Tax Thu, 30 Jul 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=67975