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2015 (8) TMI 882 - AT - Income TaxIncome from sale & purchase of shares - “Long Term Capital Gain” OR ‘business income’ - AO finalized the assessment observing that entire sale/ purchase of shares deserved to be treated as ‘business income’ rejecting the special tax treatment as per section 111(A), denying exemption u/s 10(38) - CIT(A) granted relief to the assessee - Held that:- AO has not demolished the fact that the assessee utilized its own funds for the purpose of acquiring quoted shares, which were also shown as investment in the balance-sheet. The assessee also earned dividend income therefrom and the shares have been held under investment portfolio, which were valued at the end of the year in the audited balance-sheet at the cost of acquisition and the same were not held as stock-in-trade. The AO has also not controverted the fact that there were no multiple transactions of sale/ purchase of shares and the frequency and magnitude was also very low. The observations of the AO in this regard are baseless, which were rightly demolished by the CIT(A). The view taken by the CIT(A), treating the impugned income as long term capital gain, is sustainable in accordance with law and provisions of the Act and, thus, we uphold the same. - Decided against revenue.
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