Capital Gains Cannot Become Business Income Merely Due to Borrowed Funds: ITAT Ahmedabad

DCIT Vs Kutir Navinchandra Patel (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad dismissed the Revenue’s appeal challenging the order of the Commissioner of Income Tax (Appeals) which had deleted an addition of Rs. 13.10 crore made by treating the assessee’s Short Term Capital Gain (STCG) and Long Term Capital Gain (LTCG) from sale of listed equity shares as business income. The assessee, an individual engaged in manufacturing corrugated boxes and trading in cloth through proprietary concerns, had declared STCG of Rs. 8.51 crore and exempt LTCG of Rs. 4.58 crore for As...