On what grounds the AO can treat and assess income under business head, though the income was earned as STCG by fulfilling all the conditions of sec 111A. (No. of transactions during the year > 200 and STCG amnout over Rs 1.50 Crores.)
Kamal Jain (Chartered Accountants) (29 Points)
26 September 2008On what grounds the AO can treat and assess income under business head, though the income was earned as STCG by fulfilling all the conditions of sec 111A. (No. of transactions during the year > 200 and STCG amnout over Rs 1.50 Crores.)
Prasad
(CA Final)
(140 Points)
Replied 26 September 2008
Hi kamal,
Its not the income but the nature of operation that decide assessmernt under CG or PGBP
If income is earnrd with full time devotion of time , used professional skills and judgement it will be PGBP ..if not its CG only.
No transaction does not amount to profession .....because if u go reverse way .........not tentering into any trade transaction does not mean u r not a professonal.
Concluding its nature of ur operation and use of professional skills makes its income from PGBP or else it is CG only
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