Foreseen resale of capital investment doesn’t lose its capital nature

Gyan Traders Limited Vs CIT (Calcutta High Court) Calcutta High Court held that the capital investment and resale do not lose their capital nature merely because the resale was foreseen and contemplated when the investment was made. Facts- The issue involved is that short term capital gains amounting to Rs. 29,28,799/- arising from the shares purchased as investments during the previous year ended March 31, 2005 was treated as business income. AO held that such shares were acquired by the assessee with the intention of earning quick profit and the transactions relating thereto were adventure i...