CONVERSION OF CAPITAL ASSET INTO STOCK

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..... CONVERSION OF CAPITAL ASSET INTO STOCK
Query (Issue) Started By: - SARVESH BALDI Dated:- 9-1-2013 Last Reply Date:- 21-3-2015 Income Tax
Got 1 Reply
Income Tax
SIR AN INDIVIDUAL ENGAGED .....

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..... IN REAL ESTATE BUSINESS PURCHASED A LAND AS AN INVESTMENT IN THE MID OF YEAR SAY SEPT. LAND WAS PURCHASED IN CASH.HOWEVER, ON CLOSURE OF ACCOUNTS HE REVIEWED AND CONVERTED CAPITAL ASSET PURCHASED INT .....

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..... O STOCK. CASH WAS WITHDRAWN FROM BANK ON DATE OF PURCHASE OF LAND ADN INTENTION WAS INVESTMENT. NOW CAN AO DISALLOW SUCH PURCHASES ON HOLDING THAT IT WAS BUSINESS ASSET AND PURCHASE IN CASH WAS DISA .....

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..... LLOWABLE?? PLZ GUIDE Reply By Rama Krishana: The Reply: In tax laws it is well established that Substance is more relevant over form. As long as it is on record you have purchased the Land as capi .....

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..... tal asset, the event of conversion the same as Stock in trade later would not entitle the AO to disallow the same as Cash Purchase exceeding ₹ 20,000.
Discussion Forum - Knowledge Sharing .....

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