https://www.taxtmi.com/caselaws?id=774902 The ITAT Delhi held that an assessee could convert property from inventory/stock-in-trade to investment account, resulting in capital gains treatment upon subsequent sale. The property was originally purchased in FY 2010-11 as inventory, converted to investment in FY 2016-17, and sold in AY 2020-21. Following Delhi HC precedent in Express Securities Pvt. Ltd., the tribunal ruled that since the revenue department did not challenge the conversion in FY 2016-17, it cannot later recharacterize capital gains as business income. However, expenditure incurred from FY 2011-12 onwards was disallowed against sale consideration under the "prior period" principle. en-us Wed, 09 Jul 2025 00:00:00 +0530 Wed, 16 Jul 2025 08:17:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774902 The ITAT Delhi held that an assessee could convert property from inventory/stock-in-trade to investment account, resulting in capital gains treatment upon subsequent sale. The property was originally purchased in FY 2010-11 as inventory, converted to investment in FY 2016-17, and sold in AY 2020-21. Following Delhi HC precedent in Express Securities Pvt. Ltd., the tribunal ruled that since the revenue department did not challenge the conversion in FY 2016-17, it cannot later recharacterize capital gains as business income. However, expenditure incurred from FY 2011-12 onwards was disallowed against sale consideration under the "prior period" principle. Case-Laws Income Tax Wed, 09 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774902