https://www.taxtmi.com/caselaws?id=417686 Where a capital asset is converted into stock-in-trade, the gain becomes taxable in the year the stock-in-trade is sold or otherwise transferred, and on partial sale the gain relatable to the sold portion remains taxable with fair market value on the date of conversion forming the relevant basis. The Assessing Officer's failure to examine this taxability was treated as a clear case of no enquiry, making revision under section 263 proper and the assessment erroneous and prejudicial to the Revenue. en-us Mon, 24 Jan 2022 00:00:00 +0530 Sat, 29 Jan 2022 08:44:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=417686 Where a capital asset is converted into stock-in-trade, the gain becomes taxable in the year the stock-in-trade is sold or otherwise transferred, and on partial sale the gain relatable to the sold portion remains taxable with fair market value on the date of conversion forming the relevant basis. The Assessing Officer's failure to examine this taxability was treated as a clear case of no enquiry, making revision under section 263 proper and the assessment erroneous and prejudicial to the Revenue. Case-Laws Income Tax Mon, 24 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=417686