case laws for capital gains treated as business income

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Neha Jain (Querist)
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17 September 2008 Capital gains on slae of shres shown as investments in books treated as business income by assessing officer. I need some judegements in order to support my contention that gain is capital gains not business income.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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17 September 2008 If the sale and purchase of shares are on delivery basis than such transaction cannot be treated as business income but if the transaction is on the basis of jobbing than assessing officer can treat it as business income

Neha Jain

Neha Jain (Querist)
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17 September 2008 can u suggest me some case laws on the same

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CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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17 September 2008 Even If The Shares Are On Delivery, They Can be Treated As Business Income.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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17 September 2008 it all depends........if shares are hold as stock in trade .......it will always be business income

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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17 September 2008 If shares are intended to be held as investment, dealing in such shares is not business - Normally shares in joint stock companies acquired and held by a trader in shares are the stock-in-trade of his business. His business is to buy with a view to sell at a profit. Nonetheless the trader may, if he likes, acquire and hold the shares for investment and not for purposes of trade. But his intention to retain them and enjoy their dividends and not to circulate and part with them in course of business must be distinctly shown - Bikhamchand Bagri v. CIT [1962] 44 ITR 746 (Cal.).