Capital gains or business income classification for listed shares turns on holding period, assessee's treatment, and consistency rules. Surplus on sale of listed shares and securities is to be examined for classification as capital gains or business income with the object of reducing litigation and promoting consistency. Where the assessee itself opts to treat listed shares and securities as stock-in-trade, the resulting income from transfer is to be treated as business income. Where such securities are held for more than 12 months and the assessee treats the income as capital gain, that position is not to be disputed, subject to consistency in later assessment years.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains or business income classification for listed shares turns on holding period, assessee's treatment, and consistency rules.
Surplus on sale of listed shares and securities is to be examined for classification as capital gains or business income with the object of reducing litigation and promoting consistency. Where the assessee itself opts to treat listed shares and securities as stock-in-trade, the resulting income from transfer is to be treated as business income. Where such securities are held for more than 12 months and the assessee treats the income as capital gain, that position is not to be disputed, subject to consistency in later assessment years.
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