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| The Tax Publishers2020 TaxPub(DT) 2375 (Del-Trib) INCOME TAX ACT, 1961
Section 14
Where assessee itself had treated the income arising from sale of securities held for more than 12 months as capital gains, there was no reason to dispute it by AO in so far as transaction of sale of shares was shown under the head 'Long Term Capital Gain' same could not be taxed under the head Business Income especially in the light of categorical clarification by CBDT. Circular No. 6/2016, dated 29-2-2016.
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Head of income - Business income or Capital gains - Profit on sale of shares held for more than 12 months -
Assessee-company engaged in the business of sale and purchase of shares in mutual funds declared profit on sale of shares as long-term capital gain. AO taxed the same as business income.Held: When assessee itself had treated the income arising from sale of securities held for more than 12 months as capital gains, there was no reason to dispute it by AO in so far as transaction of sale of shares was shown under the head 'Long Term Capital Gain', same could not be taxed under the head Business Income, especially in the light of categorical clarification by CBDT Circular No. 6/2016, dated 29-2-2016.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 14A
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