Case Law Details
ACIT Vs M/s. Wig Investment (ITAT Delhi)
AO has treated not only the gain on mutual funds as business income but also gain on profit and sale of shares as also as business income. Now in view of the CBDT Circular dated 29.9.2016, if shares are held for more than 12 months which have been treated as investment, the same has to be taxed under the head ‘capital gain’ and not as ‘business income’. Accordingly, we hold that Ld. CIT (A) has rightly held that gain on account of sale of shares is to be taxed under the long-term capital gain. Consequently, grounds raised by the revenue are dismissed.
FULL TEXT OF THE ITAT JUDGMENT
The appeal for the assessment year 2006-07 has been filed by the Revenue and cross objection by the assessee; and the appeal for the assessment year 2009-10 has been filed by the assessee, against common impugned order dated 27.1.2014, passed by Ld. CIT (Appeals)-XXVI, New Delhi. Since the issues involved in both the appeals are common arising out of identical set of facts, therefore, same were heard together and are being disposed of by way of this consolidated order.
2. We will first take up revenue’s appeal for the assessment year 2006-07 wherein revenue has raised following grounds: –
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