https://www.taxtmi.com/caselaws?id=49421 Where shares originally held as investment are converted into stock-in-trade and later sold, the majority applied ordinary commercial principles and treated the market value on the date of conversion as the business cost for computing trading profit. It held that the original investment price was only historical and that the earlier rule against a person trading with himself did not govern this situation, because the issue was computation of actual trading profit, not taxation of a notional gain. The dissent considered the earlier anti-fiction principle applicable and would have used the original purchase price instead. The majority approach prevailed, favouring the assessee. en-us Fri, 23 Feb 1962 00:00:00 +0530 Wed, 27 Aug 2014 12:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49421 Where shares originally held as investment are converted into stock-in-trade and later sold, the majority applied ordinary commercial principles and treated the market value on the date of conversion as the business cost for computing trading profit. It held that the original investment price was only historical and that the earlier rule against a person trading with himself did not govern this situation, because the issue was computation of actual trading profit, not taxation of a notional gain. The dissent considered the earlier anti-fiction principle applicable and would have used the original purchase price instead. The majority approach prevailed, favouring the assessee. Case-Laws Income Tax Fri, 23 Feb 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49421