https://www.taxtmi.com/caselaws?id=244243 On conversion of shares from stock in trade into investment, the holding period for capital gains purposes must be computed only from the date they assumed the character of investment. The period during which the shares were held as stock in trade is excluded because the Act expressly deals with conversion of capital asset into stock in trade, but does not provide an equivalent rule for the reverse conversion; the Tribunal therefore applied the principle that only the post-conversion holding as investment determines whether the subsequent gain is short-term or long-term. The matter was remitted to the Assessing Officer to recompute the holding period on that basis. en-us Wed, 20 Nov 2013 00:00:00 +0530 Fri, 21 Feb 2014 10:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244243 On conversion of shares from stock in trade into investment, the holding period for capital gains purposes must be computed only from the date they assumed the character of investment. The period during which the shares were held as stock in trade is excluded because the Act expressly deals with conversion of capital asset into stock in trade, but does not provide an equivalent rule for the reverse conversion; the Tribunal therefore applied the principle that only the post-conversion holding as investment determines whether the subsequent gain is short-term or long-term. The matter was remitted to the Assessing Officer to recompute the holding period on that basis. Case-Laws Income Tax Wed, 20 Nov 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244243