Profit on Sale of Share immediately after conversion from Stock in Trade to Investment is Business Income

The assessee is engaged in the business of manufacture of Gas mantle and stove. Besides the assessee was also engaged in trading of shares and it has show the shares on hand as its “stock in trade” in the earlier years. As on the beginning of the current year, i.e., on 1.4.2005, the assessee transferred the Shares from “Stock in trade” to “Investment” account. Immediately thereafter, the assessee sold shares, the details of which are furnished at page 83 of the paper book. From the said statement, we notice that the assessee sold shares on 05.04.2005, 19-04-...