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6. The ld. Counsel for the assessee, on the other hand, has reiterated the stand of the assessee before the taxing authorities. It has been contended that the Trust was brought into existence for the benefit of the three children of the settlors of the Trust. Attention has been drawn to the copy of the Trust Deed dated 24.3.2010, which has been placed in the assessee's paper book, at pages 48 to 71 thereof. It has been pointed out that the Trust Deed clearly mentions the objective of the Trust to be the utilization of the Trust corpus, and the income generated therefrom, for the benefit and maintenance of the beneficiaries of the Trust and the ensuring of an effective intergenerational transfer of wealth, and such other objectives, as are specifically detailed in Schedule I of the Trust Deed. It has been contended that the shares in question were not purchased, as wrongly observed by the A.O., but were gifted and that it is a case of sale simplicitor of the corpus of the Trust; that the Trust was set up on 24-3-2010 and the sale took place on 29-3-2010; that in the next year, all the shares were sold; and that the profit from the sale of the M/s Tech Mahindra shares was temporarily invested in liquid fund 6 ITA 5397/M/13 & ITA 5709/M/12 and post that, it was invested, as per the Trust Deed, to broaden the base of the investment, into more secured investments. Reliance has been placed on "Saroj Kumar Mazumdar vs. CIT", 37 ITR 242 (SC) and "Ashok Kumar Jalan vs. CIT", 187 ITR 316 (Bom).

10. The assessee filed written submissions dated 27-8-2012 before the A.O. A copy thereof is to be found at the assesse's paper book, pages 98-103. Therein, the assessee submitted that the purpose of the Trust was not to carry out any business, but to make investment; and that the object of the Trust was to ensure an effective succession planning mechanism and intergenerational transfer of Trust corpus and income. It was stated that the long term capital gain of Rs. 14,69,09,814/-, earned on the sale of shares, was exempt from tax u/s 10(38) of the Act. It was stated that the Trust had received six lacs shares of M/s Tech Mahindra from the Settlor of the Trust, as the corpus of the Trust. This letter/certificate is placed at the assessee's paper book, page 101. It reads thus:

8 ITA 5397/M/13 & ITA 5709/M/12 "26th March 2010 To whomsoever it may concern This is to confirm that in my capacity as a Settlor of Vernan Private Trust, I have contributed the following shares towards the corpus of the aforementioned Trust on 26th March, 2010.

Scrip No. 1: Tech Mahindra Limited.

      Demat Account No.      Date           of Qty               Amount (Rs)
                             Purchase
      1204470004464687       24 Oct. 08        26600             9,968,582.32
            :IN 300214       26 March 07       573400            38,417,800.00
            :10768294


      Sincerely,

      Sd/-

      Vineet Nayyar
      (Settlor Vernan Private Trust)"

Thus, it is evident that the shares were contributed by the Settlor of the Trust, towards the corpus of the Trust.

11. It is in the above factual background that it is to be seen whether the transfer or sale of shares by the assessee was in the nature of business/adventure in the nature of trade. As seen hereinabove, the six lacs shares of M/s Tech Mahindra Ltd. were contributed towards the corpus of the Trust. These shares were sold and exemption u/s 10(38) of the Act was claimed on the sale proceeds. Now, the very object of the Trust was the utilization of the Trust corpus and the income generated therefrom in investment, so as to ensure the benefit of the Trustees. It needs to be seen as to whether the transfer is towards this avowed intention, or not. It has come on record by way of the assessee's written submission dated 31-3-2010 (assessee's paper book, pages 32-47), filed before the ld. CIT(A), that out of the six lacs shares, contributed towards the corpus of the Trust, 96% were 9 ITA 5397/M/13 & ITA 5709/M/12 allotted to Shri Vineet Nayyar, Settlor of the Trust under the Employee Stock Option Plan (ESOP for short). The remaining 26,000 shares were purchased by the said Settlor, That is to say, that i.e., only about 4% shares were bought by the Settlor. Then, whereas under the ESOP, the shares were allotted on 26-3-2007, they were settled on the Trust only on 24-3-2010, which shows that it was not the intention of the Settlor to resell the shares immediately and thereby to make quick profit. Likewise, the balance 26,600 shares, acquired on 24-10-2008, were held till 24-3-2010, when the same were settled. The shares were not acquired/purchased by the assessee Trust itself. They were sold gradually and the proceeds arising from the sale thereof were invested in Mutual Funds/Debt Instruments or Government Securities, which are, undoubtedly, less risky investment modes.