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2012 (12) TMI 256 - AT - Income TaxSale of Shares - whether Business (‘adventure in the nature of trade’ or ‘business’) or LTCG (as per Assesssee) - sole criterion of abnormal profits cannot lead to conclude that the ‘sale of asset’ was an ‘adventure in the nature of trade’- held that:- Assessee is not a dealer in shares and has acquired shares consequent to the re-organization of the business as per the terms approved by the Hon'ble Bombay High Court and as the entire group was getting reorganized and foreign investor was acquiring the controlling interest in the part of group business, the shares were sold to M/s Mysore Breweries Ltd. Since the abnormal profit as considered by AO arose in the peculiar circumstances of the case, it cannot be considered that the realization of profit can be considered as adventure in nature of trade. Assessee continued to have its beer business and income from beer business of Rs.6.54 crores was also offered - if assessee’s acquisition of shares is not to be accepted then the shares are to be considered as held by the holding company M/s PDPL and in its hands the income would have been capital gain again - principle company i.e. Shaw Wallace Company Ltd, as AO noted that the entire income has to be considered as income of SWCL substantially and in case it was upheld, the order in assessee’s case will be modified accordingly - order of the CIT (A)is uphold - held as taxable as LTCG - appeal by Revenue is dismissed.
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