Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (2) TMI 96 - ITAT MUMBAISale of shares - treatment of Long Term Capital Gains & Short Term Capital Gains as business income - Held that:- Assessee had held the majority of shares for a very long time, varying from more than 1 year to 10 years. The income is mostly from long term holding of shares. In some cases, shares have also been sold at short intervals of less than 1 year, resulting into Short Term Capital Gain and even in such cases, mostly the shares were held for more than 90 days. It is possible for an investor to sell shares after holding for less than a year in order to reshuffle portfolio, etc. In a similar situation, the Tribunal in Assessment Year 2005-06 accepted the claim of the assessee as an investor. In that year, the assessee had shown Long Term Capital Gain of Rs.1,60,23,772/- and Short Term Capital Gain of Rs.26,36,004/-. The assessee had also shown small income from trading, for which separate accounts had been maintained. Further, in the AY 2002-03 and 2004-05, the AO himself accepted the similar income declared by the assessee as capital gain. The capital gain declared by the assessee was again accepted by the AO for the AY 2007-08 u/s.143(3). Considering the facts and circumstances of the case, it will not be appropriate to assess the income declared by the assessee from sale and purchase of shares as business income - in favour of assessee.
|