https://www.taxtmi.com/article/detailed?id=509 Characterisation of an asset depends on the assessee's real occupation with the asset and the natural manner in which it is held: assets not held in the ordinary course of a trader's business are capital assets and gains on transfer are chargeable as capital gains. Accounting treatment may be relevant but cannot alter the legal nature of the asset; wrongful classification in books does not convert a capital asset into stock-in-trade where the assessee is not a trader in that item. The Assessing Officer may, however, rectify earlier wrongful business deductions that affect cost of improvement. en-us Wed, 30 Sep 2009 00:00:00 +0530 Wed, 30 Sep 2009 17:58:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=509 Characterisation of an asset depends on the assessee's real occupation with the asset and the natural manner in which it is held: assets not held in the ordinary course of a trader's business are capital assets and gains on transfer are chargeable as capital gains. Accounting treatment may be relevant but cannot alter the legal nature of the asset; wrongful classification in books does not convert a capital asset into stock-in-trade where the assessee is not a trader in that item. The Assessing Officer may, however, rectify earlier wrongful business deductions that affect cost of improvement. Articles Income Tax Wed, 30 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=509