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2013 (11) TMI 1330 - ITAT MUMBAIClassification of head of income - ‘Capital gain’ or ‘Income from Business and Profession’ on purchase and sale of shares – The holding period for the shares is less than 365 days - Character of the shareholding by the assessee, i.e., whether as ‘investment’ or as ‘trading stock’, for resale at a profit, as soon as a profit opportunity arises on the horizon – Held that;- The ‘long term capital gain’, i.e., the profit on shares held for more than 365 days is, at Rs.6.66 lacs only, as against Rs. 50+ lacs declared as ‘short term capital gain’. Though not conclusive, this is again a strong indicator as to the shares being not intended to be held by way of ‘investments - What is the appropriate time for the sale of shares, and which, thus, determines its holding period, would be a business decision, guided, apart from the prevailing market price, an assessment of the risk and return factors attending their holding or exposure therein, including anticipated price movement of the relevant scrip. The holding period would not, thus, carry any additional significance under such circumstances - Profit returned as ‘short term capital gain’ by the assessee-company for the year stands rightly assessed by the Revenue as business income – Decided against the Assessee.
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