https://www.taxtmi.com/caselaws?id=753817 ITAT Ahmedabad held that gains from sale of IPO-allotted shares should be treated as short-term capital gains rather than business income. The tribunal applied the principle of consistency, noting the assessee had previously treated similar transactions as STCG which was accepted by the department in scrutiny assessment. The Revenue failed to provide valid reasons for changing its stance. The tribunal emphasized that when shares are held as investments rather than stock-in-trade, resulting gains must be classified as capital gains. The decision cited CBDT circular promoting consistency to reduce litigation and referenced Gujarat HC precedent supporting capital gains treatment for investor transactions. Assessee's appeal was allowed. en-us Fri, 07 Jun 2024 00:00:00 +0530 Mon, 10 Jun 2024 09:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753817 ITAT Ahmedabad held that gains from sale of IPO-allotted shares should be treated as short-term capital gains rather than business income. The tribunal applied the principle of consistency, noting the assessee had previously treated similar transactions as STCG which was accepted by the department in scrutiny assessment. The Revenue failed to provide valid reasons for changing its stance. The tribunal emphasized that when shares are held as investments rather than stock-in-trade, resulting gains must be classified as capital gains. The decision cited CBDT circular promoting consistency to reduce litigation and referenced Gujarat HC precedent supporting capital gains treatment for investor transactions. Assessee's appeal was allowed. Case-Laws Income Tax Fri, 07 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753817