Assessee-partnership \ufb01rm is engaged in the business of investing in mutual funds. During the year, it earned pro\ufb01t on redemption of mutual funds which were offered to tax under the head \u2018Capital Gains\u2019. However, the assessing officer assessed the income under the head \u2018Profits and Gains from Business or profession\u2019. The Commissioner of Income-Tax (Appeals) and Hon\u2019ble Delhi Tribunal upheld taxability under the head \u2018Capital Gains\u2019. On appeal by the Department, the Hon\u2019ble Delhi High Court \u00a0upheld the order of the lower Appellate Authorities holding that owing to the quantum of trade, value, purpose, period for which mutual funds were held, and how disclosure had been made in books of account, the transaction was in the nature of investment and not motivated by trade. Therefore, the gains were to be assessed under the head \u2018Capital Gains\u2019. \u00a0(Circular No. 19\/2017, dated 12-6-20017).(AY. 2006-07), 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45:Capital gains-Business income-Total income-Redemption of mutual fund units-Income taxable as capital gains and not as business income. [2(45), 28(i), 260A]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-42425","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-b2h","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=42425"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42425\/revisions"}],"predecessor-version":[{"id":42426,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42425\/revisions\/42426"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=42425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=42425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=42425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}