Case Law Details
ACIT Vs Sunil Bakht (ITAT Delhi)
The holding period of the assessee is minimum of 72 days and maximum of 186 days in the four schemes. The assessee contended before the ld CIT(A) that these are the only four transactions during the year. Magnitude of the investment coupled with the volume is also not much. The ld CIT(A) relying on the decision of the BS Raju Vs. Addll. CIT held that same is capital gain. He further held that in case of mutual fund the assessee does not have any control on the manner in which further investment have been made. Further, in case of the assessee, in earlier years the revenue has accepted the claim of the assessee as capital gain or loss. There is no change shown to us in the facts of the case this year. In this year only there is a change in the stand of the revenue. The ld CIT(A) has also followed the principle of consistency. On reading of the order of the ld CIT(A) we do not find any infirmity in holding profit of sale of mutual fund earned by the assessee as chargeable to tax under the head capital gain and not as business income.
FULL TEXT OF THE ITAT JUDGMENT
1. This appeal is filed by the ld ACIT, Circle-33(1), New Delhi against the order of the ld CIT(A), XI, New Delhi dated 28.04.2016 for Assessment Year 2011-12. The only ground of the appeal of the revenue is that the assessee has earned profit on sale of mutual funds of Rs. 26953746/- as capital gain shown by the assessee. The ld AO treated the same as business income but the ld CIT(A) held it to be capital gain.
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