https://www.taxtmi.com/circulars?id=2827 Distinction between holdings of shares as capital asset and as stock-in-trade determines whether receipts are taxed as capital gains or as business income. Assessing officers should examine books of account (valuation and year-end classification), magnitude and pattern of purchases and sales, the ratio between purchases, sales and holding, and the taxpayer's motive. No single test is decisive; conclusions must follow the totality of circumstances. Taxpayers may maintain separate investment and trading portfolios and may have income under both heads accordingly. en-us Fri, 15 Jun 2007 00:00:00 +0530 Wed, 06 Mar 2024 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=2827 Distinction between holdings of shares as capital asset and as stock-in-trade determines whether receipts are taxed as capital gains or as business income. Assessing officers should examine books of account (valuation and year-end classification), magnitude and pattern of purchases and sales, the ratio between purchases, sales and holding, and the taxpayer's motive. No single test is decisive; conclusions must follow the totality of circumstances. Taxpayers may maintain separate investment and trading portfolios and may have income under both heads accordingly. Circulars Income Tax Fri, 15 Jun 2007 00:00:00 +0530 https://www.taxtmi.com/circulars?id=2827