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2018 (3) TMI 1303 - AT - Income TaxIncome from sale of shares - busniss income or capital gain - period of holding - Benefit of deduction u/s 35 denied - Held that:- Hon’ble Delhi High Court in the case of D & M Components Ltd. (2014 (4) TMI 866 - DELHI HIGH COURT) while deciding a somewhat identical issue has held that where there was short duration of holding of shares and lack of clarity in account books, sale and purchase of shares would lead to business income and not short term capital gains. The various other decisions relied by the assessee also supports his case that the profits in the instant case of purchase and sale of shares would amount to business income and not short term capital gain as held by the Assessing Officer. We set-aside the order of the ld. CIT(A) and direct the Assessing Officer to allow the claim of business income on account of profit on sale of such shares. Since the assessee succeeds on this issue, the claim of the assessee regarding the deduction u/s 35 of the I.T. Act is also allowed subject to verification of other conditions if any by the Assessing Officer. - Decided in favour of assessee.
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