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2022 (9) TMI 776 - HC - Income TaxCorrect head of income - Gain on sale of shares - business income OR short term capital gains - period of holding of shares rules of consistency - HELD THAT:- It is an undisputed factual position that the assessee has been keeping the shares in the investment portfolio which has been accepted in all the previous years and some of the shares which have been sold during the assessment year under consideration were treated as short term shares where the opening investment shares from that of the previous year and such shares were accepted in the previous year to be under the investment portfolio of the assessee companies. We have also noticed from the chart produced by assessee that the frequency of the transactions is very meagre and the volume of the transaction was within the net worth of the assessee company by utilising their own funds. Further we find that for the assessment year 2004-05, in a scrutiny assessment the assessing officer has treated the investment kept by the assessee in the investment portfolio as an investment in shares and the income thereon was computed under the head of short-term capital gains. We are of the clear mind that the rules of consistency has to be maintained in the case of the assessee for the assessment year under consideration and the assessee rightly relied upon the decision of the Hon’ble Supreme Court in Radhasoami Satsang [1991 (11) TMI 2 - SUPREME COURT] - Decided in favour of the assessee.
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