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2012 (10) TMI 90 - ITAT MUMBAIIncome from sale and purchase of shares - business income or capital gains - assessee filed the return of income showing income from speculation profit, short term capital Gains (STCG) and long term capital gains (LTCG) and income from other sources - Held that:- There are various factors such as frequency, volume, entry in the books of account, nature of funds used, holding period etc, which are relevant in deciding the true nature of transactions and no single factor is conclusive. Treatment in the books of an assessee will not be conclusive and if the volume, frequency and regularity at which transactions are carried out indicate systematic and organized activity with profit motive then it becomes business profit and not capital gains. In present case, on perusal of records, we observe that there are repeated transactions of purchase and sales on a regular basis. Considering all these facts, it shows that assessee is a trader in shares and not an investor as the frequency and volume are not only quite high, but the period of holding also varies from a few days to a few months. The above factors clearly establish that the intention of the assessee that she was a trader in shares. In view of above, the order of ld CIT(A) accepting the claim of the assessee in respect of STCG cannot be sustained. However, on the basis of the facts and principles, as discussed herein-above, LTCG on sale of shares is accepted - Decided partly in favor of assessee
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