24 September 2021
Courts have held that transactions carried out by the PMS Manager are in the nature of transactions for maximization of wealth rather than withdrawing the profits on appreciation in value of shares. Since the taxpayer was engaged in systematic activities of holding portfolio through the PMS Manager, it could not be said that the main object of holding the portfolio was to make profit by sale of shares during the course of its investment activities. With this view, profit from PMS can be characterized as “Capital Gain” income. One can place reliance on the following cases: Salil Shah Family P. Trust vs. ACIT [2013] 36 taxmann.com 543 (Mumbai ITAT.) KRA Holding & Trading Pvt. Ltd. vs DCIT 2011 (5) TMI 498 (Pune ITAT)
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