https://www.taxtmi.com/caselaws?id=7194 The tax treatment of surplus from the sale of deferred shares turns on the character of the acquisition and the assessee's real intention at the time of purchase. Where shares are acquired to secure or strengthen voting power, they may constitute a capital asset, but that conclusion depends on proof of a genuine investment purpose. On the stated facts, repeated share dealings, the absence of dividends on the deferred shares, the small holding relative to issued capital, and no later attempt to increase the holding supported an inference of profit motive. The excess realised was therefore treated as income from an adventure in the nature of trade rather than a capital receipt. en-us Wed, 20 Dec 1967 00:00:00 +0530 Thu, 12 Feb 2009 12:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7194 The tax treatment of surplus from the sale of deferred shares turns on the character of the acquisition and the assessee's real intention at the time of purchase. Where shares are acquired to secure or strengthen voting power, they may constitute a capital asset, but that conclusion depends on proof of a genuine investment purpose. On the stated facts, repeated share dealings, the absence of dividends on the deferred shares, the small holding relative to issued capital, and no later attempt to increase the holding supported an inference of profit motive. The excess realised was therefore treated as income from an adventure in the nature of trade rather than a capital receipt. Case-Laws Income Tax Wed, 20 Dec 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7194