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2016 (7) TMI 384 - AT - Income TaxProfit on sale of shares - “business income” OR “capital gains” - Held that:- It is an undisputed fact that the assessee earned profit on sale of shares and it is also a fact that assessee has availed the services of Portfolio Managers for purchase and sales of shares and the act of the assessee of engaging the PMS and the profits earned therefrom has been considered to be a part of business of the assessee by the ld.CIT(A). We find that Hon’ble Karnataka High Court in the case of CIT-Bangalore vs. Kapur Investments (P) Ltd.(2015 (5) TMI 616 - KARNATAKA HIGH COURT) after relying on the decision of Hon’ble Delhi High Court in the case of Radials International vs. ACIT [2014 (5) TMI 18 - DELHI HIGH COURT ] has held that the Portfolio Management Services (PMS) cannot be termed as business of the assessee. Thus we are of the view that the profit earned by the assessee on sale of shares is to be treated as capital gains and not as business income of the assessee.
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