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2015 (10) TMI 2595 - AT - Income TaxIncome arising on sale of shares - capital gain or business income - Held that:- During the year under consideration, the assessee has dealt in 68 scripts. But the repetitive transactions are few in numbers. The period of holding was less than 30 days in respect of 49 scripts and the same may actually go against the claim of the assessee. However, we notice that the assessee’s claim of Long term capital gains has been accepted by the AO. Hence, in our view, the low period of holding in respect of certain scripts may not be considered to be the sole determining factor. The assessee has furnished details of the days spent by the assessee on stock market at page 23 of the paper book. A perusal of the same would show that the assessee has spent on an average only 6 days in a month on share trading activity. The assessee has also earned dividend income of ₹ 46.25 lakhs. All the factors discussed above, in our view, shows that the intention of the assessee was mainly to act as investor only. Accordingly, we are of the view that the gains arising on sale of shares should be assessed under the head Capital gains only. Accordingly, we set aside the order of Ld CIT(A) and direct the AO to assess the profits arising on sale of shares as Capital gains only. - Decided in favour of assessee.
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