Even gains on shares held for 30 days & less is STCG & not business profits

Hitesh Satishchandra Doshi vs. JCIT (ITAT Mumbai)

Even gains on shares held for 30 days & less is STCG & not business profits

The assesses was engaged in the business of share trading and investments and offered income from sale of shares by way of STCG and LTCG. The AO treated the STCG as business profits on the ground that there was “systematic and regular course of share trading activity, the scale of activity was frequent and huge and the quantity purchased and sold are huge and repetitive”. It was also held that the ratio of purchase to opening balance and sales to closing balance made the assessee a trader in shares and not investor in shares. On appeal, the CIT(A) held that the gain arising on shares held for more than 30 days was STCG while the gains on shares held for less than 30 days was assessable as “business profits”. On cross appeals, HELD deciding in favour of the assessee:

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