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2015 (7) TMI 444 - AT - Income TaxSale of shares of Satyam Computers - 'Short-term capital gain' OR 'Business income' - Held that:- It is an undisputed fact that the assessee took delivery of such shares after making full payment and it was not a case of settling the transaction of purchase and sale of such shares during the settlement period itself. This is another reason to indicate that the intention of the assessee to hold them as Investment. Also the assessee was consistently holding some other shares as investment over a period of time and was regularly earning income from their sale by declaring profit as 'Short-term capital gain' or 'Long-term capital gain' depending upon the period of their holding. There is no doubt that shares of Satyam Computers were not purchased or treated as Investment in any of the earlier years, but at least this factor shows that the assessee was also engaged in the purchase of shares as Investment and showing profit from their sale under the head 'Capital gains'. This treatment of profit from sale of shares held as investment has not been disputed by the AO in the assessments made u/s 143(3) of the Act. The assessee has placed on record a copy of the assessment orders for immediately preceding assessment year in which there was 'Short-term capital gain' of ₹ 17.21 crore which has been accepted by the AO vide his order dated 29.12.2011. Similarly, there is an order passed u/s 143(3) for assessment year 2006-07 accepting that the assessee was engaged in the business as well as in investment of shares. A copy of such order dated 31.10.2008 is available on record from which it is manifest that there is no alteration in the character of income shown by the assessee. The principle of consistency in terms of the assessee holding shares as stock-in-trade as well as investment, cannot be lost sight of. CIT(A) rightly proceeded to accept the assessee's contention of purchasing the shares of Satyam Computers as 'Investment' rather than 'Stock-in-trade'. - Decided against Revenue.
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