27 June 2016
If jewellery purchased and sold on the same day, how it can be said to be a short term capital asset since to qualify for short term capital asset an assesse should hold the asset for not more than 36 months immediately "PRECEDING THE DATE OF ITS TRANSFER"
27 June 2016
what is the regular occupation of that person?That will play an important role...... subject to above, unless being SPECULATIVE, there is no harm in calling it a short term capital asset, even if held for say few nano seconds.
27 June 2016
He is not a trader and neither he is involve in speculation.
My point is if we strictly read the words mentioned in the bare act, it will not qualify for short term.
How can I prove someone that it is a short term capital asset after taking into consideration the provisions of Income tax Act.
27 June 2016
section 2 (42A) of Income Tax Act : "short-term capital asset" means a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer
You are holding it for NOT MORE THAN 36 MONTHS
The word DATE of transfer is to be construed as time stamp......say 14.20 hours......
Anytime before that is "immediately preceding the date of its transfer"
This is beneficial construction in "interpretation of statute"
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