COURT: | Bombay High Court |
CORAM: | B. P. Colabawalla J, M. S. Sanklecha J |
SECTION(S): | 28, 45 |
GENRE: | Domestic Tax |
CATCH WORDS: | business income, capital gains, Profit on sale of shares |
COUNSEL: | Aasifa Khan, Percy Pardiwala |
DATE: | February 22, 2016 (Date of pronouncement) |
DATE: | April 20, 2016 (Date of publication) |
AY: | 2008-09 |
FILE: | Click here to view full post with file download link |
CITATION: | |
Mere non-introduction of interest-bearing funds is not sufficient to conclude that gains from sale of shares are not business income |
There are various factors such as frequency, volume, entry in the books of accounts, nature of funds used, holding period etc. which are relevant in deciding the true nature of transactions and no single factor is conclusive. Thus, mere non-introduction of interest bearing funds will not alone determine the nature of the transactions. The impugned order, after analyzing the statement of capital gains which were available before it, came to the conclusion that most of the shares have been sold within 30 days of its purchase and upheld the order of the CIT(A)
Recent Comments