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2017 (12) TMI 1116 - AT - Income TaxProfit from investment through portfolio management service - capital gain or business income - nature of income - Held that:- In the case of CIT vs. Kapur Investment P. Ltd (2015 (5) TMI 616 - KARNATAKA HIGH COURT) held that profit from investment through portfolio management service either directly or through professionally managed firm, would still remain as profits to be taxed as capital gains as same will not change nature of investment that is in shares, and law permits it to be taxed as capital gain and not as business income. We have also observed that the assessee has right from the beginning treated the amount held in shares as part of investment in the preceding assessment year. It was also brought to our notice that in the preceding assessment years 2005-06 to assessment year 2007-08 in the assessment made u/s. 143(3) the amount of gain arose from sale and purchase of shares was assessed under the head capital gain by the assessing officer. Similarly, it was also contended that in the subsequent years i.e. assessment year 2012- 13 to 2014-15 gain arising on sale and purchase of shares was shown under the head income from capital gain and were accepted by the assessing officer in the assessment made u/s. 143(3) of the act. After considering the above facts and legal findings, we are of the view that the ld. CIT(A) was not justified in upholding the addition made by the assessing officer as business income - Decided in favour of assessee.
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