AdvertisementChittharanjan A. Dasannacharya Vs CIT-V (Karnataka High Court) The Karnataka High Court considered an appeal under Section 260A of the Income-tax Act relating to AY 2006-07. The appeal challenged the Tribunal’s decision holding that gains arising from the cashless exercise of stock options were taxable partly as salary and partly as short-term capital gains, instead of as long-term capital gains. The appeal also questioned the Tribunal’s findings that stock options were not capital assets, that cashless exercise did not constitute a transfer under Section 2(47), and that an employer-employ...