Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 1312 - ITAT DELHIProfit on sale of shares - shares held for less than thirty days - business income or capital grains - Held that:- The intention alone is the material factor to determine whether a particular share is held as investment or trading portfolio. In order to find out the intention of the parties, one is to look at the treatment given in the books of account and the conduct of the assessee that apart, the courts have evolved several tests including whether the scrips are bought from the borrowed funds and the period for which the shares are held and the frequency of the trading etc. Applying these principles to the facts of the case, it is very clear that the respondent assessee company from the beginning held the shares under investment portfolio the same is treated as investments in the books of account and where the shares are held for trading purposes the profit arising there on is offered to taxed under the business head. Disallowance of interest - Held that:- From the order of CIT(A), it is very clear that the CIT(A) had made a bifurcation between the investment portfolio and trading portfolio and therefore, the same is in line with the provisions of sec. 14A read with Rule 8D of the Income Tax Rules, 1962. Thus, we do not find any reason to interfere with the reasoning given by the CIT(A). Accordingly, the second ground raised by the Revenue is dismissed.
|