Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 408 - ITAT MUMBAIAssessment of income - gain on sale of shares - Short term capital gain v/s business income - assessee is a investor in equity stocks - Held that:- Assessee had shown net long term capital gain from sale of shares, which has been claimed as exempt. This long term capital gain has been accepted by the AO. Around fifty percent of scrips have been held for a period ranging between six months to one year, the other scrips have been held for the period ranging mostly between 2 to 6 months. There are only few scrips which has been held up to the period of 30 days on which short term capital gain has been shown. The portfolio of the shares shows that the same have been held under the head 'investment' in the balance sheet. In case of speculative transactions the assessee has dealt only in three scrips which has resulted into loss and in case of futures & options, the assessee has dealt only with one scrip of Allahabad Bank of 1500 shares on 31st October 2005, which was sold on 15th May 2006. Except for the transaction of these few scrips, the assessee has not carried out any non-delivery based transaction or future & options transaction. Thus CIT(A) that the assessee was actively involved mostly in intra-day speculative transaction and future options, appears not to be correct. Assessee has not borrowed any funds for making the investment in shares and separate portfolio has been maintained for the purpose of investment. Also in the earlier years similar nature of transaction and income from sale of shares was shown under the head short term capital gains and long term capital gains and the same has not been disturbed, though return of income has been accepted u/s 143(1). From these facts, it can definitely be gathered that the intention of the assessee in undertaking purchase and sale of shares were not for the purpose of trading but as an investor to get gain from the escalation of the share prices. Thus as per the material on record, it cannot be held that the assessee was doing trading in shares but has had held the shares for the purpose of investment - income earned from sale and purchase of shares in the case of the assessee can very well be held as income from short term capital gains - appeal of the assessee is allowed.
|