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2020 (3) TMI 1272 - AT - Income TaxInvestment in silver bars - characterization of income - capital gain or business income - plea of the appellant that the silver trading transaction entered by the appellant is "Adventure in the nature of Trade." and hence allowable as business loss - HELD THAT:- This is a solitary transaction under taken by the assessee in investing in silver bars and the assessee has neither invested in silver bars prior to this solitary transaction nor invested later in silver bars post completion of this transaction of sale of silver bar on 16.02.2020. As based upon entire material on record, said investment made by the assessee is not a business transaction but rather it is an investment made by assessee to earn capital gains and the same is to be considered for taxation under the head 'Capital Gains'. As observed that the assessee is a company and not an individual and there is no question of any personal loss in the case of the company as it could not been shown that this transaction is for the benefit of the Directors or the shareholders and hence we held it to be capital investment, income and loss are to be brought to tax under the head 'capital gains'. So far as locker rent is concerned, the assessee is a corporate entity and it is claimed that the documents and other valuables were kept in the locker for safe custody. We accept the contention of the assessee as the assessee is in business of builders and dealing with valuable property documents which needs safe keeping and we also accept the same keeping in view smallness of the amount.
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