ITAT Mumbai laid down principles to determine whether income from shares is “business” income or “capital gains”

Management Structure & Systems Vs. ITO (ITAT Mumbai) The assessee, engaged in management consultancy, offered profits of Rs. 1.03 crores earned by it on sale of shares as long-term and short-term “capital gains” depending on the period of holding. The AO took the view that as the assessee was regularly dealing in shares throughout the year, the assessee was engaged in the “business” of trading in shares and that the profits were asses sable as “business income“. This was confirmed by the CIT (A). On appeal by the assessee, HELD allowing the appeal: (i) Though there is no fixed ...