Shares cannot be treated as stock instead of investment for mere non-receipt of dividend

The respondent-assessee had submitted that their total turnover was Rs.4697.23 crores, as against investment in shares of Rs.2.95 crores. In the previous assessment years they were maintaining dual portfolio of investment (capital asset) and stock-in-trade (trading asset). The gains from investment were shown as “short-term capital gains”, whereas the profits earned from sale of shares were shown and treated as “business income” in the earlier years. The Tribunal, in view of the reasons given in paragraph 6 of their order dated 13th May, 2011, accepted the submission of the respondent-...