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2016 (6) TMI 1050 - HC - Income TaxRevision u/s 263 - whether profit on sale of shares by the assessee company was rightly shown as Long Term Capital Gain? - Held that:- As decided in COMMISSIONER OF INCOME TAX Versus N.K. ESTATE DEVELOPERS PVT. LTD. [2006 (2) TMI 659 - GUJARAT HIGH COURT] merely because the assessee had acquired shares from the promoters' quota that by itself would not be sufficient to come to the conclusion that the acquisition was for the purpose of having control of the company. That while deciding the case of a shareholder the principal requirement for determining whether the investment of the borrowed funds was for the purpose of making or earning income has to be judged in light of the facts of the case available on record, and therefore the Tribunal has come to the conclusion, on facts, that so far as the assessee was concerned it had not made the acquisition for the purpose of obtaining control of the company but was an investment simplicitor. Confirmation of allowing deduction of interest paid on borrowed funds which have been found to have direct nexus with the investment made for acquisition of shares - Decided in favour of assessee
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