Assessee purchased 1 lakh shares of Panchal Marketing Ltd \u00a0at rate of Rs. 1 per share. Purchase of shares of PML was an off-market purchase. Said company was amalgamated with Kailash Auto \u00a0\u00a0\u00a0and consequent to amalgamation, 1 lakh shares of Kailash Auto \u00a0were issued to assessee in lieu of 1 lakh shares in Panchal Marketing Ltd \u00a0\u00a0\u00a0held by assessee. Subsequently, shares of Kailash Auto \u00a0\u00a0were sold at an average price of about Rs. 38 per share and assessee disclosed Rs. 38 lakhs received by it as exempt under section 10(38). Assessing Officer denied exemption and made additions to income of assessee. On appeal to Tribunal\u00a0 held that\u00a0 the\u00a0 assessee was doing business of purchase and sale of shares and thus earned her income from transaction in shares. Just because assessee had shifted from IPOs and had made a purchase of shares in MPL, would not shift head of income from ‘capital gains’ to ‘Adventure in nature of trade’, insofar as assessee was an investor in shares and was not in business of dealing in shares. Addition is deleted. Referred PCIT v. Swati Bajaj (2022) 446 ITR 56\/ 288 Taxman 403 (Cal)(HC) \u00a0(AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains-Purchase and sale of shares-Off market purchases-Adventure in the nature of trade-Penny stock-Assessable as capital gains and not as business income.[S. 10(38), 28(i)] <\/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-43892","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bpW","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43892","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=43892"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43892\/revisions"}],"predecessor-version":[{"id":43893,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43892\/revisions\/43893"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}