The appellant has not disclosed the value at which he had transferred his capital asset in to stock in trade as on 7-4 2007. The  appellant has also not disclosed the fair market value of land as on the date of conversion. The Assessing Officer assessed the entire consideration as long term capital gains. On appeal the CIT(A) held that the capital gain on the conversion of asset in to stock in trade is taxable in which the stock in trade is sold. The cost of acquisition as on 1-4-1981 is worked out on the basis of sale instance. The CIT(A) has also directed the Assessing Officer to assesss business profits and also capital gains. On appeal the Tribunal  held that  section 45(2) is a specific provision wherein capital gains arising from conversion of capital asset to stock-in-trade are assessed in year of actual transfer of stock-in-trade. Accordingly the  FMV of land as on date of its conversion into stock-in-trade can be computed by indexation of Stamp Duty Valuation as on date of sale,  therefore, where assessee had not disclosed value at which he transferred his capital asset into stock-in-trade, Commissioner (Appeals) action of assessing impugned long-term capital gains in assessee’s hand at FMV, rather than entire sale consideration is  justified. Tribunal also held that the bifurcation capital gains and business income to the extent of business profits is held to be not valid.    (AY. 2012-13 )