When assessee is engaged in business of buying and selling shares, profit or

[CA.BHUPENDRASHAH]

When assessee is engaged in business of buying and selling shares, profit or
loss on such shares would be profit and loss of such business unless assessee
establishes that shares in question were bought as a long term investment[/color]

In a case where a company is dealing in the sale and purchase of shares,
prima-facie the profits derived from the sale and purchase of shares would be
treated to be business income of the assessee since the assessee is a trader in
shares, that does not mean that a trading firm cannot make long term investment
in shares and income from sale of such shares may fall under the head of capital
gains but when a trading firm is involved the onus would be heavily on such a
firm to show that this investment was actually a long term investment


[2010] 6 taxmann.com 83 (HP)
HIGH COURT OF HIMACHAL PRADESH
Ankita Deposits and Advances Pvt. Ltd.

v.

CIT

ITA Nos.33 & 34 of 2008