Case Law Details
CIT Vs. Gopal Purohit – (Supreme Court) – The Supreme Court vide order dated 15.11.2010 dismissed the Department’s Special Leave Petition against the judgment of the Bombay High Court in CIT vs. Gopal Purohit 228 CTR 582 (Bom).
In an appeal u/s. 260A of the Income-tax Act, 1961 by the Revenue before the Bombay High Court, the following two queries were raised:
“a) Whether, on the facts and circumstances of the case and in law, the Hon’ble ITAT was justified in treating the income from sale of 7,59,003 shares for Rs. 5,00,12,879/- as an income from short-term capital gain, and the sale of 3,88,797 shares for Rs. 6,65,02,340/- as long-term capital gain, as against the “Income from business” assessed by the A.O.
b) Whether, on the facts and circumstances of the case and in law, the Hon’ble ITAT was justified in holding that the principles of consistency must be applied here as the authorities did not treat the assessee as a share trader in preceding year, in spite of existence of a similar transaction, which cannot in any way operate as res judica to preclude the authorities from holding such transactions as business activities in current year
The Bombay High Court held as here under:
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How can I get the full judgement of CIT vs. Gopal Purohit – SC dismisses Special Leave Petition against the judgment of Bombay High Court.
Thanks,
Jamshed F. Mehta