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2016 (7) TMI 451 - AT - Income TaxShare transaction - Capital gain v/s business income - assessee had availed the services of a PMS provider - Held that:- ind the AO had reopened the scrutiny assessment and had held that the income of the assessee arising out of sale of shares had to be taxed under the head business income and not under the heads STCG or LTCG, that the FAA reversed the decision of the AO considering the fact that the assessee had availed the services of a PMS provider. In our opinion, once an assessee approaches a PMS provider, he loses control over the decision-making process for making investment in the shares. It is the PMS provider who decides as to how much money is to be invested and in which scripts- all the decisions related with sale and purchase of shares are taken by the PMS provider. Thus treating the income from sale of shares is income from Short-Term Capital Gains (STCG) of ₹ 2. 99 Crores and Long-Term Capital Gains (LTCG) of ₹ 87, 471/- as against the business income assessed by the AO confirmed - Decided in favour of assessee
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