2007 (10) TMI 295

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....the respondent. JUDGMENT The judgment of the Court was delivered by K.RAVIRAJA PANDIAN J. - The assessee company has preferred this appeal formulating the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that profit from sale of investment should be assessed as Business income as against capi....

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....ing in shares etc. For the assessment year 1993-94, the appellant filed its return of income on 30.12.1993, admitting a total income of Rs.6,51,380/-. Scrutiny assessment under Section 143(3) was completed on 25.3.1996 determining the total income at Rs.35,32,830/-. While completing the assessment, the Assessing Officer treated the income derived from sale of shares as business income as against c....

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....of accounts, it could not be said to determine that those shares were held on the investment account, whereas, in fact, the close perusal of the paper book showed who the assessee had purchased and sold shares. The Tribunal also came to the conclusion that the intention of the assessee was to make gain by dealing in them. Further, applying the principle laid down by the Supreme Court in the case o....

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....e of shares was only in the nature of investment by the company. It was for the appellant to decide its own business policy and act upon them. The mere fact that the company periodically perused its investment does not necessarily mean that the profit resulting from such variation would constitute trading in investment. 5. We heard the arguments of the learned counsel and perused the material a....