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2016 (6) TMI 1396 - AT - Income TaxGain on sale of Land - LTCG or business income - whether hares held as investments in the books of the appellants and was never converted into stock-in-trade - HELD THAT:- As per Tribunal’s order for the assessment year 2005-06 [2010 (10) TMI 1205 - ITAT BANGALORE], all the shares which were held by the assessee as stock-in-trade up to that year were converted into investments and nothing has been brought on record by the revenue to establish that after this assessment year, any purchase of shares by the assessee was for the purpose of dealing in shares. Under these facts, hold that the shares were held by the assessee as investments and therefore, the gain arising to the assessee in the present two years on sale of shares is liable to tax as capital gains and not as business income, but whether such capital gain is short term capital gains or long term capital gains, it depends upon the holding period of shares and for that, it is required to examine the date of purchase and date of sale of the shares. Since this aspect was never examined by the lower authorities and facts are not available before me on this aspect,feel it fit and proper to restore back this factual aspect to the file of the AO and accordingly, restore this matter back to the file of the AO for the limited purpose of examining the date of acquisition of shares and date of sale of shares to decide as to whether the gain arising on sale of such shares is short term capital gains or long terms capital gains - Appeals of the assessee are allowed for statistical purposes
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