TMI Blog2013 (2) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... e of conversion as 'capital gains' ? - Held that:- It is not in dispute that the conversion of its stock in trade into investment was accepted by the Department in assessment years 2003-04 and 2005-06. Also that the shares which were sold and gains from such sales were offered under the head capital gains from the date of conversion from stock in trade into investments and prior thereto as busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JJ. Appellant Rep by: Mr. Vimal Gupta, senior Adv. Respondent Rep by: Mr. Nishant Thakkar i/b. Mint Conferes ORDER Per: P.C.: 1. In this appeal by the revenue for the assessment year 2006-07, the following question of law arises for our consideration:- Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in treating the diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d into investment by the respondent-assessee on 1st April, 2002 and 1st October, 2004. Consequently, the assessing officer held that the short term and long term gains arising out of the sale of shares which were held originally as stock in trade and converted into investments was to be treated as business income. In first appeal before the CIT(A), it was pointed out that upto the date the shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gain as investments. Further the fact that the assessee was trading in the shares would not estop the assessee from dealing in shares as investment and offer the gain for tax under the head capital gains. Thus, it is open to the trader to hold shares as stock in trade as well as investments. Once the finding of fact is recorded that the shares sold were held by respondent-assessee as inves ..... X X X X Extracts X X X X X X X X Extracts X X X X
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