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2014 (12) TMI 841 - KARNATAKA HIGH COURTNature of shares held by assessee – Scope of Section 2(42A) - Whether the shares held by the assessee is a Short Term Capital Asset or a Long Term Capital Asset – Held that:- A capital asset held by an assessee for not more than 36 months immediately preceding the date of transfer is treated as Short Term Capital Asset - the shares held in a company is a capital asset - shares held in a company which may be a private limited company, a public limited company or a listed company or any other security other than those shares listed in a recognized Stock Exchange in India, if it is held for a period of 12 months, then it ceases to be a Short Term Capital Asset and it becomes a Long Terms Capital Asset - the authorities have not kept this distinction in mind - They have misread the Section resulting in the interpretation which they have placed - the interpretation is contrary to the express words used in the statutory provision which runs counter to the intent behind the provision – thus, the order of the Tribunal is set aside and the assessee is entitled to the benefit of her capital asset being treated as Long Term Capital Asset – Decided in favour of assessee.
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