https://www.taxtmi.com/caselaws?id=340305 Shares shown as investments in the books, not valued as stock-in-trade, and subjected to securities transaction tax were treated as capital assets rather than trading stock. The Revenue's reliance on transaction volume, frequency, and financing of certain IPO applicants did not, without concrete evidence of nexus or collusion, establish that the shares were acquired as trading assets. The applicable test required a cumulative assessment of intention at purchase, treatment in accounts, continuity and frequency of dealings, and surrounding circumstances. On those facts, segregation based only on the mode of acquisition was unjustified, and the surplus was taxable as short-term capital gains, not business income. en-us Wed, 22 Feb 2017 00:00:00 +0530 Mon, 20 Mar 2017 09:59:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340305 Shares shown as investments in the books, not valued as stock-in-trade, and subjected to securities transaction tax were treated as capital assets rather than trading stock. The Revenue's reliance on transaction volume, frequency, and financing of certain IPO applicants did not, without concrete evidence of nexus or collusion, establish that the shares were acquired as trading assets. The applicable test required a cumulative assessment of intention at purchase, treatment in accounts, continuity and frequency of dealings, and surrounding circumstances. On those facts, segregation based only on the mode of acquisition was unjustified, and the surplus was taxable as short-term capital gains, not business income. Case-Laws Income Tax Wed, 22 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340305