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2015 (8) TMI 618 - HC - Income TaxSale of shares - Capital gain or business income - Whether, the Tribunal has committed itself to perversity while concluding that the income of the appellant is "business income"? - Held that:- The Tribunal has recorded a finding that in the present case, Assessee's main source of income is from share transaction. His income from interest is only ₹ 4158/-. Further during the year of assessment in question, Assessee has sold shares of various Companies, i.e. Flex Industries Limited, Rathi Ispat Limited, Maharashtra Fabrics Limited, U.P. Petro Ltd. and has also purchased shares of various Companies of substantial amount. The sale and purchase of shares on the part of Assessee is continuous, periodical and with an intention to earn profit. Profit earned from share transactions have been invested in loan given to Smt. Pushpa Somani, M/s Somani and Co. M/s Jay Dee Investment. There are some further reasons and as a whole, we find ourselves in agreement with the conclusion drawn by Tribunal that the transactions of shares are "adventure in the nature of trade" and shares sold during the assessment year in question are liable to be considered as "stock entry". Thus looking to the nature of commodity, i.e., shares and also continuity of transactions in several years, in our view, the Revenue was justified in treating the income as "business income" and not "capital gain". Decided in favour of Revenue.
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