| COURT: | ITAT Delhi |
| CORAM: | Beena Pillai (JM), R. K. Panda (AM) |
| SECTION(S): | 25, 28, 48 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | adventure in the nature of trade, Business profits, capital gains, Penny Stocks |
| COUNSEL: | Piyush Kaushik |
| DATE: | March 22, 2018 (Date of pronouncement) |
| DATE: | March 26, 2018 (Date of publication) |
| AY: | 2011-12 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Gains from Penny Stocks: If the purchase of shares has been made solely and exclusively with the intention to resell at a profit and the purchaser has no intention of holding them, the transaction is an "adventure in the nature of trade" and the gains are assessable as "business profits" and not as "short-term capital gains" | |
In cases where the purchase has been made solely and exclusively with the intention to resell at a profit and the purchaser has no intention of holding the property for himself or otherwise enjoying or using it, the presence of such an intention is a relevant factory and unless it is offset by the present of other factors it would raise a strong presumption that the transaction is an adventure in the nature of trade
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