https://www.taxtmi.com/caselaws?id=756058 ITAT Delhi held that short-term capital gains from share trading should be treated as business income rather than capital gains. The tribunal found that merely labeling shares as investments was insufficient when trading commenced mid-year in the second year of business, without maintaining separate accounts or conducting delivery-based transactions. The assessee's claim under Section 80IC was allowed as the company was located in a notified industrial area and engaged in legitimate manufacturing of milk products. The tribunal also rejected the 20% ad hoc disallowance on milk purchases, finding no errors in the books of account and noting that similar profit ratios were accepted in subsequent assessment years. en-us Tue, 23 Jul 2024 00:00:00 +0530 Thu, 25 Jul 2024 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756058 ITAT Delhi held that short-term capital gains from share trading should be treated as business income rather than capital gains. The tribunal found that merely labeling shares as investments was insufficient when trading commenced mid-year in the second year of business, without maintaining separate accounts or conducting delivery-based transactions. The assessee's claim under Section 80IC was allowed as the company was located in a notified industrial area and engaged in legitimate manufacturing of milk products. The tribunal also rejected the 20% ad hoc disallowance on milk purchases, finding no errors in the books of account and noting that similar profit ratios were accepted in subsequent assessment years. Case-Laws Income Tax Tue, 23 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756058