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2017 (11) TMI 118 - AT - Income TaxIncome from sale of shares - capital gain or business income - Held that:- After carefully considering the voluminous transactions entered into by the assessee during the year and the overall conduct of the assessee , we are of the considered view that gains arising from purchase and sale of shares which are squared within 30 days of purchase by the assessee, the same may be treated as a business income and correspondingly STT paid be allowed as deduction in accordance with law , while the transactions for purchase and sale of shares which are squared after 30 days of its purchase, the same may be treated as income from capital gains. In view of decision of CIT v. Pruthvi Brokers & Shareholders (2012 (7) TMI 158 - BOMBAY HIGH COURT) the claim of the assessee raised for the first time before tribunal for grant of deduction towards STT paid is admitted and allowed as business deduction after verification on merits in accordance with law and corresponding STT paid on such shares income of which is held to be business income be allowed by the AO after verification. For the limited purposes we are restoring this matter to the file of the A.O to make computation of business income as well capital gains on shares after verification of period of holding of such shares in accordance with our above directions.
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