profit on sale of shares

[satbir singhwahi]

The assessee is engaged in sale/purchase of Land/property. During the year it has made investment in shares, profit on shares is shown as Short term and long term as the case may be.But A.O. wants to asesses STCG on shares as business income in view of circular 4 /2007 dt 15.06.2007. What is the correct position.

AI Summary

Tax Dispute: A.O. Seeks to Reclassify Short-Term Capital Gains from Shares as Business Income, Not STCG, Citing Circular. An individual involved in land and property transactions also invested in shares, reporting profits as short-term and long-term capital gains. However, the Assessing Officer (A.O.) wants to classify the short-term capital gains (STCG) from shares as business income, referencing a specific circular. A respondent argued that since the primary business is not securities trading, the income from shares should not be considered STCG but rather as 'Income from Other Sources.'