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2012 (8) TMI 269 - AT - Income TaxTreatment of capital gain earned by the assessee - AO stated Profit on Sale of Shares should not be treated as Business Income - Held that:- The assessee was investing in shares and securities and also applying for initial public offer. After holding the shares for reasonable period, whenever occasion arose, the assessee sold the same and offered short term capital gain on sale of shares - the assessee has earned capital gains only in respect of delivery based shares - existence of profit motive cannot be taken as decisive test for treating any share dealing transaction as business activity as investments are also made with the motive and intention on earning profits - where the assessee has shown income from delivery based transaction as capital gains and non delivery based transaction as business income that intention of the assessee was to make investment in shares and that the assessee can have two portfolios with the one for investment and other for share trading - Investment in shares were made for earning dividend income which was also offered by assessee in his return of income - in favour of assessee.
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