Tests laid down to distinguish shares gains as LTCG/STCG vs. business profits

CIT vs. Vaibhav J. Shah (HUF) (Gujarat High Court)

The assessee offered the gains from buying and selling shares as LTCG/ STCG. The AO held that the assessee was “dealing heavily in shares” with high frequency and magnitude and that the gains were assessable as business profits. This was reversed by the CIT (A) and Tribunal. On appeal by the department to the High Court, HELD dismissing the appeal: