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2011 (5) TMI 592 - ITAT, NEW DELHIInvestment in shares - Capital gain v/s business income - Held that:- As decided in CIT v. Sutlej Cotton Mills Supply Agency Ltd. [1975 (7) TMI 2 - SUPREME COURT] where the purchase of any article or of any capital investment, for instance, shares, is made without the intention to resell at a profit, a resale under changed circumstance would only be realization of capital and would not stamp the transaction with business character. An investment and resale do not lose their capital nature merely because the resale was foreseen and contemplated when the investment was made and the possibility of enhanced value motivated the investment. Assessee has not carried out trading in the shares continuously and systematically. She has not conducted a number of transactions. She made investment in one shares and that was sold after two and half months. She has not borrowed the capital for this purpose. She did not take special advise or employed staff and paid salary to carry out this activity - Had there was no STT payment and the rate of tax was 30 per cent then probably Assessing Officer would not disturb the declaration made by the assessee - Decided in favour of the assessee and treated as capital gain.
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