Case Law Details
Gyan Traders Limited Vs CIT (Calcutta High Court)
Calcutta High Court held that the capital investment and resale do not lose their capital nature merely because the resale was foreseen and contemplated when the investment was made.
Facts-
The issue involved is that short term capital gains amounting to Rs. 29,28,799/- arising from the shares purchased as investments during the previous year ended March 31, 2005 was treated as business income. AO held that such shares were acquired by the assessee with the intention of earning quick profit and the transactions relating thereto were adventure in the nature of trade. Accordingly, the short term capital gains of Rs. 29,28,799/- was subjected to tax as business income at the rate of 35%.
The Commissioner of Income Tax Appeals – VI, Kolkata CIT(A) allowed the appeal. Accordingly, being aggrieved, revenue preferred appeal before the tribunal which was allowed by the impugned order.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
