https://www.taxtmi.com/caselaws?id=9465 Section 40A(8) turns on whether a company's principal business is the acquisition of shares, stock, bonds, debentures or other marketable securities as an investment activity. The Court stated that "acquisition" is not confined narrowly and may cover genuine business dealings in shares, though mere speculative trading without delivery would not qualify. It treated RBI regulatory classification, the statutory scheme, and consistent past assessment treatment as relevant indicators that could not be ignored absent a material change in facts. The principle of consistency was emphasised where the underlying position remained unchanged across assessment years. The matter was remitted for reconsideration of the relevant transactions and supporting materials. en-us Tue, 12 Apr 2005 00:00:00 +0530 Tue, 23 Jun 2009 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9465 Section 40A(8) turns on whether a company's principal business is the acquisition of shares, stock, bonds, debentures or other marketable securities as an investment activity. The Court stated that "acquisition" is not confined narrowly and may cover genuine business dealings in shares, though mere speculative trading without delivery would not qualify. It treated RBI regulatory classification, the statutory scheme, and consistent past assessment treatment as relevant indicators that could not be ignored absent a material change in facts. The principle of consistency was emphasised where the underlying position remained unchanged across assessment years. The matter was remitted for reconsideration of the relevant transactions and supporting materials. Case-Laws Income Tax Tue, 12 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9465