Search Results For: stock-in-trade


QUERY: Can the assessee get his stock in hand under seizure (lying with himself but under the seizure order) released in view of insertion of proviso to section 132(1)(B)(iii) w.e.f. June 1, 2003, though the search in his case was one before its insertion? The intent of this amendment proves that stock-in-trade should not be kept under seizure.
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Firstly, it is not clear from the query, whether stock seized before June 01,2003 relates to a business. In case there are any items found from the possession of the assessee for which the assessee is not doing any business activity,

QUERY: BP was holding certain shares since 2010 as stock-in–trade. On October 30, 2013, he converted certain shares of public listed companies into capital asset, by passing a journal entry at the book value of Rs. 5 lakhs. He intends to sell the same through stock exchange. He wants to know how his tax liability will be computed?
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Unlike section 45(2), there is no provision under the Income-tax Act, when the stock-in-trade is converted into capital asset. However in the extant case, BP was holding shares of listed companies as stock-in-trade and he had converted the same into capital asset as on October 30, 2013, which he wants to sell through stock exchange. In this case,

QUERY: I am holding some shares for investment purposes and other shares for trading. I have made gains from the investment shares. Is the AO correct in treating the gains as business income?
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No! One has to be careful to ensure that there is a proper segregation of the shares held on investment account from the shares held on trading account. The investment shares must be valued at cost while the trading shares can be valued at market price if that is lower.