As per case facts, Panchsheel Textile Manufacturing and Trading, initially in Yarn/Cloths, amended its articles to trade shares. The Assessing Officer disallowed interest paid on borrowings for M/s Vardhman Polytex ... Ltd. shares, treating them as investment despite accepting other shares as trading stock. The CIT(A) provided partial relief, but the Tribunal reversed it, considering the Vardhman Polytex shares as long-term investments due to prolonged holding and controlling interest. This led to the High Court appeal. The question arose whether the shares purchased and held by the appellant of Vardhman Polytex constituted stock-in-trade, entitling the appellant to interest deduction under Section 36(1)(3). Finally, the High Court concluded that the appellant intended to trade these shares, not hold them as assets. The court noted that holding shares for profit escalation is a sound business decision and not necessarily an investment. Given that some Vardhman Polytex shares were also sold, they should be treated as stock-in-trade. The appeal was allowed, and the Tribunal's order was set aside.