whether capital gain or business income

[mahesh mundhra]

my  client have income from few trans actions of shares and thereby gained some profits all along he has shown this income as income from capital gain this year ito wanted to consider this income from business instead of capital gain my question is do we have any supporting judgement which can give relief as counter department logic

AI Summary

Income Tax Office Challenges Share Profits as Business Income; Client Argues for Capital Gains Classification Citing Case Law A client who has earned profits from a few share transactions, previously reported as capital gains, faces a challenge from the income tax office, which seeks to classify this income as business income. The response argues that if the shares are held as capital assets and the transactions are not frequent, the income should be considered as capital gains, not business income. References are made to judgments from the Bombay, Calcutta, and Gujarat High Courts that support this position, even when investments are made with borrowed funds. Additional resources and articles are suggested for further support.