2013 (2) TMI 376

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..... r: 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 difference between the purchase price of shares and the market value of shares, as on date of conversion of shares from stock-in-trade to investment .....

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..... erm 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 were in its trading portfolio i.e. till the date of its conversion as investments the gain made was offered as business income and thereafter as .....

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..... 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 investments, the gains arising out of the sale of investment were to be assessed under the head capital gains and not under the head business profits. .....

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