Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 680 - AT - Income TaxTransaction of shares - capital gain or business income - Held that:- AO has not established whether the transactions were continuous and regular besides being systematic as found out in Jaysree Pradip Shah (2010 (2) TMI 695 - ITAT, MUMBAI )wherein it was held that high frequency of transaction of purchase and sale of shares shall be considered a business activity of the assessee if transactions are continuous, regular and systematic and use of borrowed funds for purchase of such shares with short period of holding. We observe that the AO has made scrutiny assessment of the assessee u/s 143(3) of the Act for the A.Y. 2012-13 and 2013-14. The treatment given by the assessee to its capital gains has not been disturbed by the AO for the above two assessment years. Determination of the character of a particular investment in shares or other securities, whether the same is in the nature of a capital asset or stock-in- trade, each essentially a fact specific determination. The AO has not come to finding whether the assessee has carried out repetitive transactions of same share. The AO has also not established whether the transactions were continuous and regular besides being systematic. We follow the decision in CIT vs. Amit Jain (2015 (3) TMI 720 - DELHI HIGH COURT ), CIT vs. Datta Mahendra Shah (2015 (9) TMI 970 - BOMBAY HIGH COURT ) and confirm the order passed by the ld. CIT(A).
|