Good Afternoon to all,
I have an interesting doubt regarding determining an Income head.Pls read the case and help me to find out the correct procedure.
Case- Mr. A Invested Rs.10,00,000 in different securities through a Portfolio Management Service Provider called M/S B.Mr A recieved gain from his investment and continued to purchase and sell securities through M/S B, the portfolio manager for a 5 year.On filing Income Tax Mr. A declared his Income under the head Income from business and in P&L Account he shown his capital gain as receipt from sale of investment.I required clarification for the following questions
a) Can we consider Mr. A 's activity as business under Income Tax Act?
b) is it correct to show purchase and sale of security under Income from business ?
c) If it is Capital gain, is there any problem if he show it as capital gain on sixth year since he shown the same as business income in the previous year?
Thanking you all,hope positive response from all
CAclubindia
