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2016 (2) TMI 596 - AT - Income TaxSale of shares - normal business income OR short term capital gain - Held that:- As in terms of the Circular no. 1/2007 of CBDT also, neither the frequency of trading in shares nor the volume indicate that the appellant had been engaged in regular and significant trading in shares for itself. An investor may have two portfolios, one for trading purpose and another for investment. Evidently, the appellant had not made transactions except the single transaction of sale and purchase of shares which were allotted to it on all application at the time of IPO. Therefore, keeping in view the above facts, the aforesaid transaction is held to be investment in nature, which has been rightly shown as capital in nature. This ground is accordingly, allowed in favour of the appellant. - Decided in favour of assessee Disallowance of advertisement expenditure - Held that:- the appellant had made a full page advertisement, on 24 March 2008 in the "Business Standards" newspaper, which was clearly in the name of appellant company only and therefore the suspicion of the appellant that it may have been for the purpose of the entire group and not for the appellant company only, was based on incorrect facts. The appellant company therefore, meets all the requirements under section 37(1) of the Act in making claim of the advertisement expenses, which were for the purpose of business promotion of the appellant company - Decided in favour of assessee
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