https://www.taxtmi.com/caselaws?id=246245 Income from sale of shares was assessed as short term capital gain rather than business income because no single factor was conclusive and the character of the holding had to be determined from the overall pattern. The Court applied a composite test, noting that the shares were reflected as investments in the books, the number and frequency of transactions were limited, there was no significant or continuous trading activity, and dividend income was not decisive by itself. It also recognised that liquidation of an investment in response to market conditions does not, on its own, convert it into trading stock. On the facts, the overall conduct indicated investment activity, not a business of share trading. en-us Wed, 16 Apr 2014 00:00:00 +0530 Sat, 19 Apr 2014 11:11:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246245 Income from sale of shares was assessed as short term capital gain rather than business income because no single factor was conclusive and the character of the holding had to be determined from the overall pattern. The Court applied a composite test, noting that the shares were reflected as investments in the books, the number and frequency of transactions were limited, there was no significant or continuous trading activity, and dividend income was not decisive by itself. It also recognised that liquidation of an investment in response to market conditions does not, on its own, convert it into trading stock. On the facts, the overall conduct indicated investment activity, not a business of share trading. Case-Laws Income Tax Wed, 16 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246245