Case Law Analysis
|Income Tax Appellate Tribunal
Capital Gains vs Business Income | Intention, Holding Period & Accounting Treatment Govern Classification: ITAT Ahmedabad
ITAT Ahmedabad ruled that borrowing funds alone cannot reclassify share sales as business income; the decisive factors are the assessee's investment intent, holding duration, and consistent accounting treatment. This clarifies a critical boundary for individual investors and traders, protecting genuine long-term gains from being wrongly taxed as business profits.