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2016 (3) TMI 1180 - ITAT AHMEDABADProfit from share transaction - business income or short term capital gains - Held that:- The assessee has not opted to treat its holding of listed shares and securities as stock in trade and nor any income arising from transfer of such shares/securities has been treated as its business income rather assessee has been disclosing income from sale/purchase of shares as long term and short term capital gain consistently in its income tax return and also relying on the decision in the case of CIT vs. Vaibhav J. Shah HUF (2012 (8) TMI 306 - GUJARAT HIGH COURT) and Dev Ashok Karvat vs. DCIT (2012 (2) TMI 14 - ITAT MUMBAI) we are of the view that AO was not correct in treating the income from capital gains as business income. Further nothing has been doubted in regard to the genuineness of the transactions of purchase/sale of shares entered into by the assessee during the year as well as in the following years wherein claim of long term capital gains and short term capital gain has been accepted by the Assessing Officer as filed in the return of income by the assessee. In these circumstances and in view of above judicial pronouncements and Board Circular, we are of the view that income of the assessee shown from short term capital gain from sale of shares should not be treated as business income. - Decided in favour of assessee
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