TMI Blog2013 (3) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction was not an adventure in the nature of trade as the shares sold by the respondent-assessee to its holding company was not tradeable in the market like any other normal trading asset, concluded that the gains arising from the sale of shares has to be tax under the head capital gains. Exemption under section 47(v) is to be allowed to assessee as the same applies only to capital gains and not to income taxed as business income - in favour of assessee. - ITA No.1672 of 2011 - - - Dated:- 4-3-2013 - J P Devadhar and M S Sanklecha, JJ For the Appellant: Mr Abhay Ahuja For the Respondents: Mr J D Mistri, Sr. Adv. Atul K Jasani JUDGEMENT:- 1. In this appeal by the revenue for the assessment year 2005-06 followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent-assessee to its holding company was not taxable under the head capital gains but were taxable under the head profits and gains of business and profession. The assessing officer inter alia proceeded on the basis that the shares held by L T Crossroads Pvt. Ltd. was held by the respondent-assessee for a period of 8 months before its sale. 3. In appeal, the CIT(A) upheld the order of the assessing officer and held that the profits on sale of shares was to be taxed as business income. However, the CIT(A) held that the subject shares were held by the respondent-assessee for four years and not eight months as held by the assessing officer. 4. Being aggrieved, the respondent-assessee carried the matter in appeal to the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same is not taxable as business income. The Tribunal also placed reliance upon the decision of the Supreme Court in the matter of Ramnarain Sons Pvt. Ltd. V/s. CIT reported in 41 ITR 534 to conclude that even if the shares were acquired for the purposes of acquiring control of a company, it cannot be treated as stock in trade. 5. Mr. Abhay Ahuja, learned counsel for the revenue submits that even a single transaction of purchase and sale outside the assessee's line of business may constitute a adventure in the nature of trade. In support reliance was placed upon the decision of the Supreme Court in the matter of CIT V/s. Sutlej Cotton Mills Supply Agency reported in 100 ITR 706 (SC). The Supreme Court in the matter of Sutlej ..... X X X X Extracts X X X X X X X X Extracts X X X X
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