Assessee earned profit on sale of shares which was shown as exempt. AO taxed profit on sale of shares earned as business income. Tribunal held that the shares in question were not purchased by assessee trust at all.  It was also found that shares in question were settled by settler of trust who himself had not purchased majority of those shares but had received by way of Employee Stock Option Plan and shares were held by settler himself for over two years before settling them in trust. Accordingly the Tribunal held that profit arising from sales of shares was to be treated as capital gain exempt from tax under section 10(38) of the Act. High Court affirmed the order of the Tribunal. (AY. 2010-11)