https://www.taxtmi.com/caselaws?id=8419 In determining whether a share transaction is trading or investment in nature, the decisive test is the real character of the dealings as shown by the assessee's intention and the surrounding circumstances at the relevant time. The pattern of purchases and sales, fluctuations in voting control, and the disposal of substantial holdings supported a commercial adventure in shares directed to resale rather than acquisition of an enduring capital asset. On that approach, the loss on sale of shares was treated as a revenue loss deductible in computing business income, and the contrary view that the loss was capital in nature could not stand. en-us Tue, 13 Jul 1971 00:00:00 +0530 Wed, 15 Apr 2009 09:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8419 In determining whether a share transaction is trading or investment in nature, the decisive test is the real character of the dealings as shown by the assessee's intention and the surrounding circumstances at the relevant time. The pattern of purchases and sales, fluctuations in voting control, and the disposal of substantial holdings supported a commercial adventure in shares directed to resale rather than acquisition of an enduring capital asset. On that approach, the loss on sale of shares was treated as a revenue loss deductible in computing business income, and the contrary view that the loss was capital in nature could not stand. Case-Laws Income Tax Tue, 13 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8419