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2010 (10) TMI 15 - HC - Income TaxSale of shares - capital gain versus business profit - AO held that transaction in the nature of 'adventure in the nature of trade' - Though the assessee had purchased/sold other shares and units of mutual funds, this solitary transaction had been disputed by the Assessing Officer mainly because the assessee had purchased the shares in question from borrowed funds obtained on high rate of interest, which also forms the basis for the conclusion arrived at by the Assessing Officer that the transaction in question is an "adventure in the nature of trade or business" rather than a normal investment. - Held that: - merely because the shares had been purchased from borrowed funds obtained on high rate of interest would not change the nature of the transaction from investment to one in the nature of an "adventure in the nature of trade".
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