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2011 (11) TMI 48 - HC - Income TaxRevenue loss or capital loss - loss on sale of shares holding as investment - Held that:- In the first instance, it may be noted that as per the memorandum/articles of association, investment in shares is one of the main objectives of the company. Then the shares in question held by the assessee were always shown as investment only. Even if the Assessing Officer has wrongly stated the period of 8 years for holding these shares before their sale, the fact remains that these shares remained with the company for substantial period. From the inception, the shares were treated as investment in every year till their sale in the balance sheet. While showing it in the profit and loss account, the remarks of the auditors become relevant and could not be brushed aside so conveniently as has been done by the Tribunal. - shares in question were held as investments and loss on the sale thereof was capital loss and not Revenue loss. - Decided in favor of revenue.
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