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2021 (2) TMI 539 - AT - Income TaxCorrect head of income - Income from sale of shares - “income from capital gains” or “business income” - HELD THAT:- Transaction of purchase and sale of share is in respect of one script only. Purchases are made in instalments and thereafter they have been sold in instalments. Hence, it is not a case of repetitive purchase and sales. Shares purchased in earlier years have been held as `investment’. Own funds are used for purchase of shares and not borrowed funds. The main object of the assessee is `investment’ and the objective of trading is only with reference of commodity.Assessee has declared short term capital gains and paid taxes accordingly, even though it has brought forward business loss. In light of the aforesaid reasoning we hold that profits on sale of shares in given facts and circumstances of the case, ought to be taxed under the head 'capital gains’. Appeal filed by the assessee is allowed.
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