How To Classify Shares Gains As STCG vs. Biz Profits: High Court Lays Down Tests

---------- Forwarded message ----------
From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Sat, May 12, 2012 at 10:36 AM

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

CIT vs. Sahara India Housing Corporation Ltd (Delhi High Court)

Objective tests to classify shares gains as STCG vs. biz profits laid down

 

The assessee offered gains from sale and purchase of securities as "capital gains". The AO assessed it as business profits on the ground that in the earlier years, it was offered as such. The CIT (A) & Tribunal accepted the assessee's plea on the ground that the securities were shown as "investments" in the accounts and in the earlier years, the STCG was offered as business profits as there was no difference in the tax rate. On appeal by the department, HELD reversing the Tribunal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

---------------------

Latest:

CIT vs. De Beers India Minerals Pvt Ltd (Karnataka High Court) To "make available" technical knowledge, mere provision of service is not enough; the payer must be enabled to perform the service himself