Assessee-partnership firm is engaged in the business of investing in mutual funds. During the year, it earned profit on redemption of mutual funds which were offered to tax under the head ‘Capital Gains’. However, the assessing officer assessed the income under the head ‘Profits and Gains from Business or profession’. The Commissioner of Income-Tax (Appeals) and Hon’ble Delhi Tribunal upheld taxability under the head ‘Capital Gains’. On appeal by the Department, the Hon’ble Delhi High Court  upheld the order of the lower Appellate Authorities holding that owing to the quantum of trade, value, purpose, period for which mutual funds were held, and how disclosure had been made in books of account, the transaction was in the nature of investment and not motivated by trade. Therefore, the gains were to be assessed under the head ‘Capital Gains’.  (Circular No. 19/2017, dated 12-6-20017).(AY. 2006-07), 2010-11)