TaxTMI 
TaxTMI 
2019 (1) TMI 603
X X X X Extracts X X X X
X X X X Extracts X X X X
....1 instead of Business Income as assessed by the Assessing Officer? (b) Whether on the facts and circumstances of the case and in law, the Tribunal 'F' Bench, Mumbai should not have considered the income of Rs. 14,69,09,814/as Business Income in light of the facts brought on record by the Assessing Officer examining the transaction in light of various parameters laid out by CBDT Instructions and Judicial pronouncements?" 2 This Appeal concerns the Assessment Year 2010-11. Respondent-Assessee is a registered Trust. The RespondentAssessee during the previous year, relevant to Assessment Year in question, had sold certain shares and earned income of Rs. 14,69,09,814/therefrom. The Assessing Officer taxed the income as the Assessee&#....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nerational transfer of Trust corpus and income. The Tribunal, therefore, was of the opinion that, the Revenue was not correct in holding that the sale of shares of the Trust, would be its business income. The Tribunal in the process made the following observations: " 12:Further, it is seen that, it is nowhere the case of the Department that the Trust is sham or bogus Trust. The validity of the corpus of the Trust, correctly noted by the ld. CIT(A), has never been doubted. Apropos the activity of sale of shares, in the fact, as discussed, we do not find it to be a business activity. The shares were treated as an investment all through and not as stockintrade. The balance sheet says so. No funds were borrowed for the activity. Only one sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts corpus at the time of the very inception of the Trust; that the assessee's claim holding pattern by way of diversification of asset was also not repelled by the A.O.; that the fact that a Portfolio Manager was appointed is synchronous with the intent and objective of the creation of the Trust; and that holding the shares of just one corporate entity not being desirable was a decision as per the prudence of the Trust. 13:We, for the above discussion, are ad idem with the ld. CIT(A), in arriving at the conclusion that from the sale of shares undertaken by the assessee during the year under consideration, no business activity stands made out." 5 Whether sale of shares by Assessee would invite capital gain or would be business income,....