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2015 (9) TMI 284 - AT - Income TaxTreatment to profits derived from share transaction - business income OR short term capital gains - Held that:- The CIT(A)’s findings extracted demonstrate frequency and magnitude of share transactions, assessee’s accounting treatment, holding period, absence of any borrowed funds being utilized in shares etc. to name a few decisive factors. It has come on record that assessee’s identical profits in preceding assessment year stand treated as capital gain only. It entered into 10 transactions in relevant previous year. The former head of long term capital gains comprise of shares held from minimum 15 months to holding period as long as 32 months. The same can in no way be taken an instance of a trading activity. More particularly, when such a long term investment covers almost three assessment years. Decided against revenue. Short term capital gains vis-à-vis business income - Held that:- Suffice to say, the transactions relate to five scripts. This gross amount involves a sum of ₹ 22,09,327/- i.e. more than 90% arising from sale of M/s Guj. Heavy Chemicals scrips carried over from preceding assessment year only. This leaves behind other four scrips. Two of them have holding period less than a month i.e. 18 days and two days; respectively involving profits of ₹ 7,873/- and ₹ 2,600/-. We take into account non usage of borrowed funds, separate portfolio being maintained along with judicial consistency as in preceding assessment year and hold that these transactions do not involve any trading element therein. We accept assessee’s grounds and reverse the CIT(A)’s corresponding findings. Decided in favour of assessee.
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