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2020 (11) TMI 594 - AT - Income TaxCorrect head of income - income arising from sale of equity shares - Income from business or income from short term capital gain - HELD THAT:- It is quite evident that the assessee has classified the equity shares purchased by it as ‘investments’ and not as ‘stock-in-trade’ as on 31/3/2006 and as on 31/3/2005 in the Balance Sheet. Therefore, the assessee is right in its rem to treat the gain resulting from the sale of its investment in equity shares under the head “income from short term capital gains” as per the provisions of the Act. Error committed by the Chartered Accountant in his audit report will not alter the intention of the assessee for holding the equity shares purchased by it as “investment” which is evident from the statement of accounts/Balance Sheet of the assessee. Thus direct the Ld. AO to treat the income earned by the assessee during the relevant assessment year as “Short Term Capital Gain” or “Long Term Capital Gain” as the case may be. - Decided in favour of assessee.
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