Shanti Prime Publication Pvt. Ltd.
Sec. 2(14) & 45 of the Income-tax Act, 1961 — Capital gain – The assessee challenged the order of Tribunal in holding that the income arising on sale of shares held as capital asset after conversion from stock in trade as business income and not as capital gains. High Court allowed the Tax Apppeal of the assessee holding that “In the absence of any provision in the Act, the transaction in question could not have been subjected to tax. Prior to amendment of the Act, which came into force with effect from 1-4-2019, the income arising on sale of shares held as capital asset after their conversion from stock in trade was treated as capital gains. Thus, the tribunal erred in treating the income arising on sale of shares held as capital asset after conversion from stock in trade as business income. - KEMFIN SERVICES (P.) LTD. V/s ASSTT. CIT - [2020] 315 CTR 336 (KARN)