https://www.taxtmi.com/caselaws?id=770011 ITAT Delhi held that conversion of stock-in-trade to capital asset is permissible, following SC precedent in Sir Kikabhai Premchand case. The tribunal ruled that absent specific legal prohibition and given bona fide business purpose, such conversion cannot be deemed a colorable device for tax avoidance. Income from subsequent sale qualified as long-term capital gains with indexation benefits. Commission payments made through banking channels with proper TDS deduction were allowed. Short-term capital loss on share transfer was upheld as genuine transaction through stock exchange, rejecting revenue's claim of bogus loss based on SEBI inquiry where assessee wasn't implicated as beneficiary. Assessee's appeal allowed. en-us Wed, 30 Apr 2025 00:00:00 +0530 Mon, 05 May 2025 08:37:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770011 ITAT Delhi held that conversion of stock-in-trade to capital asset is permissible, following SC precedent in Sir Kikabhai Premchand case. The tribunal ruled that absent specific legal prohibition and given bona fide business purpose, such conversion cannot be deemed a colorable device for tax avoidance. Income from subsequent sale qualified as long-term capital gains with indexation benefits. Commission payments made through banking channels with proper TDS deduction were allowed. Short-term capital loss on share transfer was upheld as genuine transaction through stock exchange, rejecting revenue's claim of bogus loss based on SEBI inquiry where assessee wasn't implicated as beneficiary. Assessee's appeal allowed. Case-Laws Income Tax Wed, 30 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770011