Gain on sale of Shares held for more than 12 months as investment is LTCG

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 dism...