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2013 (2) TMI 376 - BOMBAY HIGH COURTDifference between purchase price of shares and market value of shares as on date of conversion of shares from stock-in-trade to investments - Tribunal treated it as business income and difference between sale price of share and market value of shares, as on date of conversion as 'capital gains' ? - Held that:- It is not in dispute that the conversion of its stock in trade into investment was accepted by the Department in assessment years 2003-04 and 2005-06. Also that the shares which were sold and gains from such sales were offered under the head capital gains from the date of conversion from stock in trade into investments and prior thereto as business profits. Further in its books of accounts the respondent-assessee showed the shares on which tax is levied under the head capital gain as investments. Further the fact that the assessee was trading in the shares would not estop the assessee from dealing in shares as investment and offer the gain for tax under the head capital gains. Thus, it is open to the trader to hold shares as stock in trade as well as investments. Once the finding of fact is recorded that the shares sold were held by assessee as investments, the gains arising out of the sale of investment were to be assessed under the head capital gains and not under the head business profits. No question of law arises for our consideration.
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