Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 351 - AT - Income TaxLong-term Capital Gains on sale of Equity Shares - Exemption u/s.10(38) - Period of holding - Whether the transaction of purchase of shares by the assessee is to be considered as investment or stock in trade? - HELD THAT:- No evidence was filed to show that the contention of the assessee is only to hold the shares as capital asset not as stock in trade. The Circular No.6/2016 dated 29.02.2016 specifically states that where the assessee itself opts to treat the shares as a stock in trade irrespective of the period of holding listed the shares, the income arising from the transfer of such shares could be treated as a business income. In the present case, though the assessee disputes the treatment given in the books of accounts but admittedly fact remains that the shares were shown as a part of stock in trade and therefore the Circular No.6/2016 dated 29.02.2016 issued by the CBDT cannot come to the rescue of the assessee. Is settled position of the law that the intention at the time of acquisition of shares is the determinative factor to decide whether the shares are held on stock in trade or investment account. In the present case, there is a prima facie evidence on record to show that the shares are held as stock in trade on purchase of shares was debited to P&L A/c. This would prima facie prove the intention on the part of the assessee that the shares are held on trading account. Nothing is brought on record in rebuttal of this evidence. We have no option but to hold that the investments in shares were held in trading account and the surplus arising on sale of such shares is liable to tax as business income. - Decided against assessee.
|