Income from sale of shares is business income when funds borrowed for trading purpose

CIT II Vs First Choice Professional Services Private Limited (Madras High Court)

Madras High Court held that income from sale of shares is to be treated as business income since money was borrowed and invested in shares only for the purpose of trading in shares. Accordingly, income from sale of shares cannot be treated as short-term capital gain.

Facts- The substantial question involved herein is whether the Tribunal was right in holding that the profit from sale of shares as short term capital gain when the assesses has purchased shares out of borrowed cap

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