https://www.taxtmi.com/caselaws?id=190958 When shares originally held as investment are converted into stock-in-trade and later sold, trading profit is computed on ordinary commercial principles by taking the market value at the date of conversion as the business cost. The earlier investment purchase price is only a historical fact and does not govern the computation of real business profits on the eventual sale. The cited Supreme Court authority was treated as distinguishable because it dealt with a fictional sale and potential profits, not an actual sale and actual trading gains. en-us Tue, 06 Mar 1956 00:00:00 +0530 Sat, 11 Mar 2017 12:17:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190958 When shares originally held as investment are converted into stock-in-trade and later sold, trading profit is computed on ordinary commercial principles by taking the market value at the date of conversion as the business cost. The earlier investment purchase price is only a historical fact and does not govern the computation of real business profits on the eventual sale. The cited Supreme Court authority was treated as distinguishable because it dealt with a fictional sale and potential profits, not an actual sale and actual trading gains. Case-Laws Income Tax Tue, 06 Mar 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190958