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2014 (7) TMI 507 - AT - Income TaxTreatment of sale of shares – Business income or capital gains - Whether the income arising out of sale of shares is to be treated as business income or it has to be assessed as capital gains – Held that:- The decision in ACIT Vs. Smt. Vijaya Srinivasan [2014 (7) TMI 124 - ITAT CHENNAI] followed - the profit arising from shares held for more than 30 days is to be considered as short or long term capital gain depending upon the period of holding and that where shares have been purchased and sold in less than 30 days, the profit has to be considered as business income - The Income Tax Act only recognizes the period for determining short term or long term capital gain - The criteria of 30 days for determining business income or capital gain is neither recognized nor acceptable under the provisions of the Income Tax Act - The intention of the assessee in purchasing the shares was clearly to earn profits from sale and not to earn dividend or investment - the shares held by the assessee for longer period may be treated as investment and the profit arising to be treated as long term capital gain - as regards shares held for short duration are concerned, the magnitude, frequency and volume of transactions gives flavor of business income and the same is considered to be income from business – Decided partly in favour of Revenue.
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