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2014 (5) TMI 79 - AT - Income TaxNature of Income - Income from transfer of shares - Whether or not the short term capital gain and long term capital gain on transfer of shares amount to business income – Held that:- The transaction of shares which have been assessed as “Short Term Capital Gain” and “Long Term Capital Gain” are to be treated as “Business Income” - it is evident from the period of holding of the shares under the head “Long Term Capital Gain” that they remain for substantial period and maximum period being more than ten years - In the case of “Short Term Capital Gain”, the maximum gain has been received from the transactions of shares, which were held between three months to twelve months - all the investments have been made out of own funds and no borrowed funds have been utilized - the assessee is also maintaining separate records and portfolio for the investment purpose and Security Transaction Tax (for short “STT”) has been paid in respect of the shares, on transfer of which, capital gain has been earned – the decision in The Commissioner of Income Tax Versus Gopal Purohit [2010 (1) TMI 7 - BOMBAY HIGH COURT] followed – the order of the CIT(A) upheld – Decided against Revenue.
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