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2012 (9) TMI 199 - HC - Income TaxProfit of sale of shares - 'income from capital gains' OR 'income from business' - ingenuine gift deed - Held that:- To implement the objects of the company, two of the shareholders gifted 25000 shares of M/s. Infosys Technologies Limited, the said shares being shown as investment, thus merely because the company has earned profits by selling some of the shares, that doesn't mean that the company is engaged in shares trading. There is no bar for gifting the equity shares to its company as the company being a separate entity in law, the Shareholders of the company can gift their shares in favour of the company. For the solitary sale of shares, it cannot be said that the assessee is doing the business in shares. The assessee-company is only an investment company to buy, invest, acquire and hold the shares, stocks and debentures - As decided in CIT, NAGPUR v/s SUTLEJ COTTON MILLS SUPPLY AGENCY LIMITED [1975 (7) TMI 2 - SUPREME COURT] "in the absence of any evidence of trading activity in cases of purchase and resale of shares, it has to be held that the profit arising from the resale is an accretion to the capital - Thus the solitary sale of shares by the assessee cannot be treated as trade or business in the shares - in favour of assessee.
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