21 December 2010
The assessee is engaged in sale/purchase of Land/property. During the year it has made investment in shares, profit on shares is shown as Short term and long term as the case may be.But A.O. wants to asesses STCG on shares as business income in view of circular 4 /2007 dt 15.06.2007. What is the correct position.
21 December 2010
refer this link http://itatonline.org/archives/index.php/cit-vs-gopal-purohit-bombay-high-court-shares-activity-treated-as-investment-in-earlier-years-cannot-be-treated-as-business-in-subsequent-years-if-facts-are-the-same
and other case laws mentioned in the link. It will depend upon the volume of transaction and frequency of trade to decide whether it is capital gains or business income.