Whether the date of transfer, as referred to in section 54E of the Act, is the date of conversion of the capital asset into stock-in-trade or the date on which the stock-in-trade is sold or otherwise transferred by the assessee

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..... apital asset into stock-in-trade or the date on which the stock-in-trade is sold or otherwise transferred by the assessee Circular : No. 791, dated 2-6-2000 . 1. 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 .....

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..... poses of section 54E of the Act, the date of transfer in such cases is the date on which the capital asset is converted by the assessee into stock-in-trade and not the date on which such stock-in-trade is sold or otherwise transferred by the assessee. Section 54E became inoperative for transfers made on or after 1-4-1992. 4. Sections 54EA, 54EB and 54EC also provide deduction from long-term ca .....

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