1999 (8) TMI 20

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..... of the Revenue, is against the order passed by the Income-tax Appellate Tribunal, Cochin Bench, in I. T. A. No 793/Coch of 1994. The relevant assessment year is 1991-92. The question that arises for consideration is whether the profit earned by the assessee on the sale of certain shares held by the assessee is assessable as capital gains or as business income. The Tribunal took the view that in th .....

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..... verted all the shares into stock-in-trade and so the profit in respect of the sale of shares was assessable only as capital gains. The Assessing Officer was directed to allow appropriate deduction under section 54F and section 48 of the Income-tax Act. Aggrieved by the above, the Revenue filed an appeal before the Tribunal. The Tribunal confirmed the view taken by the first appellate authority. .....

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..... the whole operation show that the first step---the purchase of the shares---was not taken as, or in the course of, a trading transaction." To apply the principle, it has to be examined whether the shares in question were originally acquired by the assessee in the course of his trade or business. No material had been placed before the Tribunal to show that they were so acquired. On the other hand .....

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