Tax exemption on the sale of capital assets converted into stock-in-trade--Clarification regarding section 45(2) read with section 54E of the Income-tax Act, 1961

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.... Dated 18/5/1990 Section 2(47) of the Income-tax Act provides that any conversion of capital assets into stock-in-trade shall be regarded as a transfer. This transfer arises in the year in which such conversion takes place and, accordingly, capital gain would normally arise in that very year. However, section 45(2) of the Act postpones the assessment of such capital gains to the year in which the....