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2011 (8) TMI 631 - AT - Income TaxNature of Income- Business Income Versus Capital Income - sale of shares- shares held as stock in trade converted to investments in preceding Assessment year- Held that:- The assessee was acting only as an investor rather than as trader which is proved by the average holding period of shares being more than two years similiar to an investor, when the IT Act 1961 itself requires only one year holding period to classify capital gain as long term. Instances of sales were less than instances of purchase once again similiar to an investor and mere emphasis on the proposition that asset was initially purchased with the sole intension of selling the same later at a profit, does not qualify it to be an adventure in the nature of trade. Investments are made for being sold at the appropriate time for realizing the capital appreciation. Moreover, all delivery based transactions are to be held as investment transactions and profits arising therefrom have to be taxed as capital gains only. See CITvs Gopal Purohit [2010 (1) TMI 7 - BOMBAY HIGH COURT]. Decided in favor of the assessee.
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