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2012 (10) TMI 1106 - AT - Income TaxSurplus arising out of the sale of share held for period of less then 30 days - business profit OR short-term capital gain - Held that:- While going through the computation of income for subsequent assessment year we find that though assessee suffered loss on sale of shares, the same has been shown as short-term capital loss and the same was carried forward to the next year instead of treating the same as business loss and taking advantage of this by way of reducing the income of that year. The intention of the assessee is clear that he has treated investment in shares as “investment” and not for the purpose of trade. The Revenue has not brought any material to show that assessee has invested in shares for “trade”. We further find that Revenue has not filed any appeal against the order of CIT(A) treating the investment of assessee in shares for more than 30 days and less than 12 months as investment in short-term asset. There is no provision under the Act to indicate that the holding period of 30 days is relevant to decide whether any transaction is made for investment or for trading. Therefore, we have no hesitation in holding that ld. CIT(A) was not justified in treating the surplus arising out of sale of shares held for the period of less than 30 days as business income instead of short-term capital gain shown by the assessee. - Decided in favour of assessee.
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