https://www.taxtmi.com/caselaws?id=6918 Shares withdrawn from a joint venture's stock-in-trade at their recorded cost did not generate taxable profit merely because their market value may have been higher. Accepted accounts showed that the shares were deducted from venture stock and charged to the participant at cost, defeating any inference that they were transferred in satisfaction of profit at an enhanced value; the proposed addition was therefore deleted. The right to receive deferred shares, acquired with the withdrawn shares and not converted into stock-in-trade, remained an incident of capital. Sale proceeds from that right were consequently treated as a capital receipt. en-us Mon, 10 Jul 1967 00:00:00 +0530 Sat, 07 Feb 2009 08:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6918 Shares withdrawn from a joint venture's stock-in-trade at their recorded cost did not generate taxable profit merely because their market value may have been higher. Accepted accounts showed that the shares were deducted from venture stock and charged to the participant at cost, defeating any inference that they were transferred in satisfaction of profit at an enhanced value; the proposed addition was therefore deleted. The right to receive deferred shares, acquired with the withdrawn shares and not converted into stock-in-trade, remained an incident of capital. Sale proceeds from that right were consequently treated as a capital receipt. Case-Laws Income Tax Mon, 10 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6918