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Trading in Shares/Mutual Funds is not ‘Business’ if treated as Investment in Past Years

In Principal CIT v. M.B. Finmart Pvt Ltd, the division bench of the Delhi High Court has held that the income from trading in shares/mutual funds must be treated as ‘Capital Gain’ if the Revenue has been treating the same as investment in the past years.

Before the High Court, the department challenged the order of the first appellate authority and the Appellate Tribunal contending that trading in shares/mutual funds should be treated as capital gains.

Article referred: http://www.taxscan.in/trading-sharesmutual-funds-not-business-revenue-treating-investment-past-years-delhi-hc/7528/

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