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2016 (7) TMI 843 - AT - Income TaxTreatment to profit on sale of shares - business income or investments - Held that:- In view of the clarification issued by the CBDT regarding determination of income under the head business income or capital gains, it stands clarified that it is upto the assessee as to how he derives income from share transactions- whether as business income or as capital gains. This clarification has been given by the CBDT with the sole objectives of reducing litigation and maintaining consistency in approach on the issue of treatment of income derived from transfer of shares and securities. In view of this clarification, the decisions relied upon by the AO are distinguishable on facts. The AO itself has accepted the identical nature of income in the assessment year 2006-07 u/s. 143(3). Therefore, there being no change in the facts and circumstances of the case and adopting the rule of consistency as also clarified by the CBDT Circular above, there appears to good reason to give a different treatment to the income shown by the assessee as capital gain. - Decided against revenue
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