| Question And Answer | |
|---|---|
| Subject: | Intra Day Trading in Equity & Trading in Futures & options |
| Category: | Income-Tax |
| Querist: | CA. Ankit Tantia |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | F&O, intraday trading |
| Date: | December 12, 2023 |
In one of the Assessment Proceedings for the Assessment Year 2018-19, The Faceless Assessment Unit has considered Income from Intraday Trading in Equity and Income from Trading in Futures & options as Short Term Capital Gain.
The Assessee has considered Income from Intraday Trading in Equity as Speculative Business Income and Income from Trading in Futures & options as Normal Business Income which in my opinion is correct.
Whether the below noted contention of the Assessment Unit is correct?
Contention of the Assessment Unit: “Since the assessee is an Employee of a PSU, the Profit from Intraday trading in Equity and Income from Trading in Futures & options is considered as Short Term Capital Gain and hence the same is calculated accordingly”
Whether the transaction is business or capital gains one has to decide the intention of the assessee and entries in the books of account . The Assessee has correctly declared income from Trading in Futures & options as Normal Business Income. The order of the Assessment unit is seems to be not valid in law . Section 2(13) defines the business . In Narain Swadeshi Weaving Mills v .CEPT (1954) 26 ITR 765( SC) , the supreme Court held that even a single or isolated transaction may also amount to business.