circular 6 / 2016 CBDT

I'd like to understand if the following classification of "Stock in Trade" and "Capital Gain" is correct in view of circular 6/2016 of CBDT.

1. Assesse classifies gain from all shares sold before 12 months as business income.

2. Assesse classifies all owned shares older than twelve months as investments qualified for "Capital Gain".

Thank you.

Here is the relevant circular:

https://www.google.co.in/search?q=circular+6%2F2016+cbdt&oq=circular+6%2F2016+cbdt&aqs=chrome..69i57j0.10091j0j4&client=ms-android-xiaomi&sourceid=chrome-mobile&ie=UTF-8