taxation

(120- 100) =20 will be the capital gain and (100-80) = 20 will be the profit from business......................

with due respect to first reply, i would like to tell you that

capital profit= fair value of assets on date of conversion - indexed cost of acquisition

                       =  120-100= 20 will be capital gain long term

but u will incure a business loss. u have sold the assets at 80 and u r cost would be the fair market value at which u have converted fixed assets into stock in trade

so business loss 80 - 120 = 40

 K thank you very much for the reply.

I was confused when i read the the reply given by sandeep