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2011 (3) TMI 607 - HC - Income TaxCapital gain or business income - The main reason because of which the Assessing Officer treated the income from sale of shares as business income was that the assessee was in the business of sales/purchase of shares - The assessee, even otherwise, entitled to have these two portfolios as per given Accounting Standard 13 issued by the Institute of Chartered Accountants of India on "Accounting for Investments‟ which provides that the company is required to value its "short term investments‟ i.e. investment which have been made with a view to resell at a profit in a short period of time at cost or fair market value whichever is lower, whereas long term investments are required to be valued at cost, unless there is a permanent diminution in their values - Right from the very beginning it has been valuing its shares held in the investment account on cost basis and not on the basis of cost or market value which is lower at the end of relevant accounting year - The profits resulted therefrom was capital gain - Therefore, these appeals are dismissed in limine
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