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| The Tax Publishers2020 TaxPub(DT) 5327 (Sur-Trib) INCOME TAX ACT, 1961
Section 14
Taking into account all facts, in respect of income of share transaction earned by assessee, AO was directed to treat the 'gain' from sale of shares held by the assessee for a period of one month or more, but less than one year as 'short-term capital gain'; while the shares held for less than a month should be treated as trading purchases of the assessee and profits from the same should be assessed under the head 'business income'.
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Head of income - Business income or Capital gains - Income of share transaction - 30 days theory
Assessee had shown short-term capital gain from trading of shares and claimed it to be short-term capital gain. AO was of the view that the motive of the assessee was not investment but to earn profit. Thus, the assessee was not an investor. In view of the facts, the short-term capital gain earned by assessee was treated as business income of the assessee. Held: Taking into account all facts of assessee's case, AO was directed to treat the 'capital gain' from sale of shares held by the assessee for a period of one month or more, but less than one year should be treated as investment and profit earned from sale of the same should be assessed as 'short-term capital gain'; while the shares held for less than a month should be treated as trading purchases of the assessee and profits from the same should be assessed under the head 'Business income'.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2010-11
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