Bombay High Court: Borrowed fund profits taxed as business income, not capital gain

The High Court of Bombay held that profit from transactions with borrowed funds should be treated as Business Income, not Short Term Capital Gain, for Assessment Year 2005-06. The Registry was instructed to convey the order to the Tribunal for subsequent actions.

---

---

The High Court of Bombay heard an appeal related to Assessment Year 2005-06. The substantial question of law was whether profit from transactions with borrowed funds should be treated as Short Term Capital Gain or Business Income. The Registry was directed to communicate the order to the Tribunal for further proceedings.

---