Dismissing the appeal of the revenue the Court held that ; intention of assessee at time of purchase of shares is paramount; if assessee had clear intention of being an investor and held shares by way of investment, assessee is investor and, any gain arising out of transfer of shares should be treated as ‘capital gains’ and not ‘business income’ . ( AY.2005 -06)
PCIT v. Bhanuprasad D. Trivedi (HUF)( 2017) 87 Taxmann.com 137 ( Guj) (HC) Editorial: SLP of revenue is dismissed ,PCIT v. Bhanuprasad D. Trivedi (HUF) (2018) 256 Taxman 66/ 256 Taxman 292 (SC)
S. 45 : Capital gains –Business income – Investment in shares -Intention of assessee at time of purchase of shares is paramount -Gain arising on sale of shares which was held as investment is assessable as capital gain and not as business income .[ S.28(i) ]