Assessee claimed exemption under section 10(38) in respect of long-term capital gain earned on sale of PSTL shares. Pursuant to SEBI’s investigation, the Assessing Officer declared assessee to be involved in price manipulating of PSTL’s shares and held sale of PSTL shares was business income of assessee denying exemption under section 10(38). It was observed that in balance sheet and profit and loss account, assessee had two portfolios viz., investment portfolio and trading portfolio, and shares of PSTL were always held under investment portfolio and nothing contrary had been brought on record to controvert findings of Commissioner (Appeals) and same were treated as an investment by revenue, in preceding years. Thus, the Commissioner (Appeals) was justified in treating profit earned from sale of PSTL shares as a long-term capital gain eligible for exemption under section 10(38) (AY. 2009-10)