Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 1236 - AT - Income TaxIncome from sale of shares - Long term capital gains v/s business income - Held that:- The assessee sold 25 script during the year out of which three were of Long term which were held for more than 12 months and 21 scrips were held for less than a year. In all there were 28 transactions of purchases and 43 transactions of sales in all. The average period of holding for long term securities was 768 days whereas the securities which yielded short term capital gain was 107 days and those yielded short term capital gains was 48 days. The assessee also filed the details of short term and long term capital gains right from the assessment year 2005-06 to AY 2011-12 which reveals that the revenue has consistently accepted the stand of the assessee barring the year under consideration. The department cannot dictate the manner and method of treating the activity of assessee in shares as trading activity in one year while accepting the same as investment in shares in other years which were even scrutinized u/s 143(3). Moreover, the case of the assessee is fortified by the CBDT circular bearing number 6 of 2016 dated 29.2.2016. The assessee was not carrying any trading activity into equity shares and securities and therefore, we are inclined to set aside the order of the ld. CIT(A) and direct the AO to treat the income from sale and purchase of shares as short term and long term capital gains. - Decided in favour of assessee
|