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2015 (1) TMI 1294 - HC - Income TaxNature of income - Share transaction - Short term capital gain v/s business income - ITAT confirmed gain as STCG - Held that:- The bulk of the shares held by the assessee were for a substantial period; this persuaded the appellate authorities to hold that the test indicated by the previous rulings of the Supreme Court, as to whether the income was derived on account of liquidation of investments, stood satisfied. In similar circumstances, in Commissioner of Income Tax v. Devasan Investments Pvt. Ltd. (2014 (4) TMI 682 - DELHI HIGH COURT ) and other decisions, this Court has held that there cannot be a single factor or criterion to determine whether income falls under the head of short term capital gain or of business income. The ITAT has followed the reasoning indicated in the judgment of the Supreme Court and appropriately applied the tests. Consequently, we find no infirmity in this order. As urged on behalf of the appellant that no claim for expenditure could have been allowed, given that the income is not a business income. Consequently, we hereby direct that while giving effect to the order of the ITAT, the AO shall examine the permissibility of expenditure in relation to the short term capital gain as well as in relation to the business income, in accordance with law.
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