2011 (1) TMI 1108 - HC - Income Tax

Purchase and sale of stock - Business transaction or sale of capital asset - Held that - As it is seen from the orders that for the two preceding assessment years 2001-2002 and 2002-2003 the department accepted the assessee s claim that the transaction is trading and the loss is a business loss, assessee has no opening stock or closing stock of any shares and so much so, they were treating it as purchase and sales without retaining the asset for any appreciable period. order of the Tribunal upheld to treat it as business transaction and dismiss the departmental appeal.

Summary

The Kerala High Court upheld the Tribunal's decision that the purchase and sale of stock by the assessee is a business transaction, not the sale of a capital asset. The court found no substantial question of law as the department had previously accepted similar claims by the assessee. The appeal by the department was dismissed.