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2014 (1) TMI 490 - HC - Income TaxSale of shares - Capital gain or income from business activity - Held that:- Following Venkataswami Naidu & Co. v. CIT [1958 (11) TMI 5 - SUPREME Court] - The character of a transaction cannot be determined solely on the application of any abstract rule, principle or test but must depend upon all the facts and circumstances of the case - Where a purchase is made with the intention of resale, it depends upon the conduct of the assessee and the circumstances of the case whether the venture is on capital account or in the nature of trade. A transaction is not necessarily in the nature of trade because the purchase was made with the intention of resale - A capital 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 values motivated the investment - Decided against Revenue.
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