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2014 (8) TMI 645 - HC - Income TaxIncome from sale of shares – Business income or STCG – Held that:- The Tribunal rightly was of the view that merely because the dividend has not been received from shares held as investments, the nature of shares cannot be treated as stock-in-trade - assessee has maintained investment portfolio as well as trading portfolio - The shares in the investment portfolio have been held in Demat account - profit on sale of shares will be assessable under the head “short term capital gain” and not as business income – Following the decision in Gopal Purohit Vs. JCIT [2010 (1) TMI 7 - BOMBAY HIGH COURT] - the profits earned on sale of shares held as investment will be assessable under the head “short term capital gains” and not as “business income” - The shares held as investment were kept in a separate portfolio – the shares related to only three companies - Shares of State Bank of India were also purchased and kept in the investment portfolio account and not treated as stock in trade - These shares were sold after a gap of 4 months or more – Decided against Revenue.
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