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2020 (6) TMI 433 - HC - Income TaxCorrect head of income - income arising on sale of shares held as capital asset after conversion from stock in trade - business income or capital gains - HELD THAT:- It is evident prior to introduction of Finance Bill, 2018 by which provisions of the Act have been amended to provide for taxability of in cases where stock in trade is converted into capital asset, there was no provision to tax the same. In the absence of any provision in the Act, the transaction in question could not have been subjected to tax. Prior to amendment of the Act, which came into force with effect from 01.04.2019, the income arising on sale of shares held as capital asset after their conversion from stock in trade was treated as capital gains as has been held by various high courts viz., in the cases of EXPRESS SECURITIES PVT. LTD.[2013 (10) TMI 1182 - DELHI HIGH COURT], DEEPLOK FINANCIAL SERVICES LTD.[2013 (10) TMI 1182 - DELHI HIGH COURT] and ADITYA MEDI SALES LTD. [2016 (8) TMI 565 - GUJARAT HIGH COURT] and JANNHAVI INVESTMENT PVT. LTD.[2008 (1) TMI 314 - BOMBAY HIGH COURT]. We agree with the view taken by various high courts on this issue. Tribunal erred in treating the income arising on sale of shares held as capital asset after conversion from stock in trade as business income. The substantial question of law framed in the appeals is answered in favour of the assessee and against the revenue.
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