Delhi High Court on conversion of stock in trade to capital asset has held that “The conversion of stock-in-trade into investments would not immediately yield any business income/loss as an Assessee cannot be held to trade with itself [Kikabhai Premchand v. CIT: [1953] 24 ITR 506 (SC)]. In the year in which the asset is sold, difference between the value at which the asset was held as stock-in-trade and the market value on the date of its conversion as investment would have to be treated as business income/loss and the difference between the market value of the asset as on the date of conversion and the value at which it is sold would be in the nature of capital gains.[Para 29] Further the period during which asset held as stock in trade not to be included for computing period of holding u/s 2(42A) Abhinandan Investment Ltd. [2015] 63 taxmann.com 263 (Delhi) NOVEMBER 19, 2015