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2017 (5) TMI 1113 - HC - Income TaxIncome derived from the sale of equity shares - business income or Long Term Capital Gain - Held that:- The equity shares were held by the assessee company since 1988-89 as a long term investment i.e. for a period of more than one year prior to the assessment in question and that the said equity shares were transferable through recognised stock exchange meaning thereby that they were listed shares. The Government of India Ministry of Finance Department of Revenue vide Circular No.6 of 2016 of the Central Board of Direct Taxes 29th February, 2016 referring to the earlier circular No. 4 of 2009 dated 15th June, 2007 has laid down that in order to reduce litigation, the sale of listed shares would be treated as capital gain if they are held by the assessee for a period of more than 12 months immediately preceding the date of these transfers. Thus the said equity shares not only for one year but for more than 16 years and that the shares were listed shares, the income derived from their transfer has rightly been treated as Long Term Capital Gain and not as business income.
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