Allowing the appeal the Tribunal held that , AO has not brought any justifiable reason to reject the claim of the assessee except assuming that it was a colourable device. After the conversion of stock-in-trade into investment no share was held as stock-in-trade. Therefore the claim of the assessee could not be rejected. Followed CIT v. Express Securities P.Ltd ( 2014) 364 ITR 488 ( Delhi) (HC) ( AY.2005 -06)
M. P. Mehrotra (HUF) v. DCIT (2018) 65 ITR 71 (SN) (Delhi) (Trib)
S.45: Capital gains — Business income —Shares and securities – Conversion of stock-in-trade into investment – Held to be valid -Gains assessable as capital gains. [ S.28(i) ]