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| The Tax Publishers2020 TaxPub(DT) 5290 (Pune-Trib) INCOME TAX ACT, 1961
Section 14
Delivery based transactions were in the nature of investments and profit received thereon was to be assessed as capital gains.
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Head of income - Business income or Capital gains - Profit on sale of shares - Delivery based transactions
Assessee declared profit on sale of shares as income from capital gains. AO taxed the same as business income. Assessee contended that AO erred in treating gains on sale of shares held as investment as business profit. Held: Assessee had maintained separate portfolios, one for investment and the other was for trading. Shares purchased in the investment portfolio were only delivery based transactions and there was no dispute that all the shares which were sold were delivery based transactions. Accordingly, gains from investment portfolio were to be assessed as income from capital gains.
Applied:Gopal Purohit (2010) 336 ITR 287 (Bom) : 2010 TaxPub(DT) 1272 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 14A
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