Profits from shares is business profits: ITAT Mumbai

Smt. Sadhana Nabera Vs. ACIT (ITAT Mumbai) The assessee, a director and shareholder in a company engaged in share trading, returned income of Rs. 78,89,499 earned by her on transfer of shares as a “short-term capital gain”. The AO took the view that as there were voluminous transactions, the assessee was engaged in share trading and the income was asses sable as “business income”. This was upheld by the CIT (A). On appeal, HELD dismissing the appeal: (i) The legal principles are well settled viz. that: (a) Whether a transaction of sale and purchase of shares is a trading or investment ...