Case Law Details
DCIT Vs Hero Investment Pvt. Ltd. (ITAT Delhi)
ITAT Delhi held that income from sale of shares/securities/PMS/Mutual Funds, etc. which were held as investment and not as stock-in-trade is taxable under the head capital gains and not under the head business income.
Facts- Revenue has preferred the present appeal mainly contesting that CIT(A) has erred in directing the AO to treat the income of the assessee from sale of shares/securities/ PMS/Mutual Funds etc and income under the head “Capital Gains” instead of “Income from Business”.
Conclusion- Held that the Ld.CIT(A) after considering the basis taken by the AO and factual position submitted by the assessee rightly drawn a logical conclusion based on CBDT Circular No.6 dated 29.02.2016 that since the assessee was shown shares in the balance sheet as investments and not as stock in trade and he also took cognizance of the fact stated by the assessee that the assessee held the shares sold for a long period ranging from 3301 days to 1352 days. The Ld.CIT(A) by retrospectively applying the CBDT Circular No.6 dated 29.02.2016 (supra) rightly held that the action of the AO treating the income as “business income” instead of “long term capital gain” is not correct thus, he negated the same.
FULL TEXT OF THE ORDER OF ITAT DELHI
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