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2014 (8) TMI 112 - AT - Income TaxIncome treated as STCG and LTCG instead of business income – Sale of shares - Held that:- The assessee has entered into 85 transactions which means roughly 1.16 transactions in every 5 days or 6.98 transactions per month - this cannot be considered to be that the assessee was engaged in high frequency transactions – relying upon CIT v/s Madan Gopal Radhey Lal, [1968 (9) TMI 14 - SUPREME Court] - there is no reference to the utilization of borrowed capital for the purchase of shares - The claim of the Revenue that the holding period is less than a month does not hold any water because the legislature itself has made distinction between the STCG and LTCG holding - If the shares are held for less than 12 months, the gains will be treated as STCG - Except in one scrip, which is ‘Master Trust’, there is no evidence on record to show that the assessee has been churning same shares – the order of the CIT(A) is upheld – Decided against Revenue.
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