Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 256 - AT - Income TaxDealing in shares - Business income or income from capital gains - Held that:- The intention of the assessee at the time of acquisition should be considered while deciding the nature of income from dealing in shares - No single factor alone can be conclusive guidance for ascertaining the intention of the assessee - Merely because the period of holding was short, it cannot be concluded that the assessee acquired the units and shares with an intention of dealing in those units and shares - There were only 3 or 4 transactions of purchase and sale of units and shares during the entire year, investment in shares and units were made from own funds and not out of borrowed funds, the assessee was engaged in the business of dealing in futures and auctions - The assessee can be said to be investor in shares and the dealer - Decided in favour of assessee. Taxability of interest - Accrual basis or cash basis - Held that:- The assessee was accounting for interest income on cash basis regularly and consistently - Merely because the assessee claimed credit for TDS of interest income which is not assessable as income of the assessee of the year on the basis of consistent and regular system followed by the assessee does not empower the Assessing Officer to change the consistent system of accounting and bring to tax interest income on mercantile basis - As per provisions of section 145 of the Act - The interest income is assessable on the basis of consistent and regular system of accounting either cash or mercantile as regularly followed by the assessee - The order of CIT(A) upheld - Decided against Revenue.
|