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2019 (1) TMI 524 - AT - Income TaxGain on sale of shares - ‘capital gain’ or ‘business gain’ - Held that:- The assessee never purchased shares from open market. When the shares were allotted, the assessee waited for the right opportunity and sold the shares thereby making profits which were returned as short term capital gain. It is not the case of the AO that the assessee has been consistently buying and selling shares of the same company or companies. The only grievance of the Assessing Officer is that the assessee sold the shares in a very short span of time. This objection of AO is not acceptable when law itself provides that profits on shares held for less than 12 months shall be treated as short term capital gain. Therefore, in the light of the said provisions of the Act, the Assessing Officer cannot say that why the shares were held for less than 12 months. Moreover, shares applied through IPOs are directly allotted in the DEMAT account and if subsequent sale has to be made through DEMAT account. There is no dispute that the Security Transaction Tax paid by the assessee was never claimed as expenditure. - decided against revenue.
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