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2016 (8) TMI 997 - AT - Income TaxNature of income - Addition on account of treating short term capital gain as business profit - Held that:- The distinction between the two types of transaction is not always easy to make. Whether the transaction is of one kind or the other depends on the question whether the excess is an enhancement of the value by realizing the security or a gain in an operation of profit making. The assessee might have invested capital in shares with an intention to resale these if in future their sale brings in a higher price. Such an investment though motivated by a possibility of enhancement value, did not necessarily render the investment a transaction in the nature of trade.It is also an admitted fact that in the preceding years, the share transactions have been considered under the head capital gains.
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