Income of CA from shares trading wasn’t business income as revenue failed to prove it as regular activity

October 24, 2015[2015] 62 taxmann.com 63 (Delhi - Trib.)/[2015] 39 ITR(T) 76 (Delhi - Trib.)

IT : Where trading in shares by assessee - CA was not his regular business activity and income therefrom was treated as capital gain by revenue in preceding assessment years, same could not be treated as business income in relevant years on same facts and circumstances

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[2015] 62 taxmann.com 63 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'A'

Income-tax Officer

v.

Ashok Kumar*

G.D. AGRAWAL, VICE-PRESIDENT 
AND CHANDRAMOHAN GARG, JUDICIAL MEMBER

IT APPEAL NOS. 1046 AND 1314 (DELHI) OF 2012
[ASSESSMENT YEARS 2007-08 & 2008-09]

MARCH  2, 2015 

Section 45, read with section 28(i), of the Income-tax Act, 1961 - Capital gain - Chargeable as (Business income v. Capital gains - Share dealings) - Assessment years 2007-08 and 2008-09 - Assessee-Chartered Accountant held shares in nature of investment and not stock-in-trade in

his books of account - Income arising on sale of shares was offered for taxation by assessee under head "Capital gains" - Assessing Officer held that main object of assessee was to earn profit from trading in shares which was clearly a business activity and income therefrom could not be held as capital gain - No evidence was brought on record to prove that trading in shares by assessee was a regular business activity - Further, income from shares was treated as capital gains by Assessing Officer in preceding assessment years - Whether, on facts, Assessing Officer was not justified in treating income from sale and purchase of shares as business income on same facts and circumstances- Held, yes [Para 11] [In favour of assessee]