CIT v. Merlin

375 ITR 118High Court2015#5574 most cited

What is CIT v. Merlin authority for?

Income derived from share transactions entered into with the intention of investment constitutes short-term capital gain, and the frequency of such transactions alone is not a determining factor to classify it as business income.

21

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v Merlin · short term capital gain · investment intention · frequency of transactions · business income · period of holding · capital gains vs business income

Also reported as

65 Taxmann.com 37

Issues it is cited on

period of holdingshort term capital gainsection 28section 43long term capital gaintransfersection 143(3)total incomebusinessdocumentinterest

Judgments citing CIT v. Merlin

ITO, Ward - 12(1), Kolkata vs. M/S. Lyons & Roses Pvt. Ltd., Kolkata

In the result, the appeal of the revenue in ITA No

ITA 1148/KOL/2009[2005-06]Status: DisposedITAT Kolkata20 Jan 2016AY 2005-06

Bench: : Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Sanjay Mukherjee, JCIT, ld. Sr.DRFor Respondent: Shri R.N Bajoria, Sr. Advocate &
Section 143(3)Section 14A

…ital Loss against the Short Term Capital Gain of the year under consideration. The grounds of appeal raised by the assessee are allowed.” 5.3.4.1. We also find that the Hon’ble Calcutta High Court in the case of CIT vs Merlin Holding P Ltd reported in (2015) 375 ITR 118 (Cal) for the Asst Years 2005- 06 and 2006-07 had held as below:- “The frequency of transactions in shares alone cannot show that the inten- tion of the investor was not to make an investment. The Legislature has not made any distinction on the basis-of frequency of transactions. The benefit of short -term capital gains can be availed of for any…