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2014 (9) TMI 435 - HC - Income TaxNature of transaction – Investment or trading - Whether the transaction was rightly held by the Tribunal to be in the nature of investment and not in the nature of trade – Held that:- Tribunal has noted that the assessee in the balance-sheet had treated the mutual funds as investments and never classified its investment in securities as stock-in-trade - The assessee company was not an investment company - The objective of the assessee company do not include activities relating to purchase or sales of shares rather, permitted to investment and deal with the money not immediately required in such a manner as may from time to time be determined – Tribunal has not taken into consideration the facts as noted by the AO and also CIT(A) – Tribunal was required to determine the cumulative effect of all the facts, including whether any dividend had been received on the units, the frequency of 26 transactions and volume of the transactions - Entries in the books of account, would normally reflect treatment given by the assessee - the actual intention and manner in which transaction of sale and purchase is to be concerned - Intention has reference to practical and empirical side of the de facto and functional aspects – thus, the matter is to be remitted back to the Tribunal for fresh adjudication relying upon Commissioner of Income-Tax Versus Rewashanker A. Kothari [2006 (1) TMI 80 - GUJARAT High Court ] – Decided in favour of revenue.
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