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2015 (12) TMI 509 - ITAT AHMEDABADTreatment given to the profits earned on sale of shares - whether it is to be considered as “business income” or “capital gains” - Held that:- CIT(A) has noted that the shares were acquired by the Assessee in IPO, ILFS Ltd. and J M Financial Services Pvt. Ltd. had partly financed the acquisition of those shares, the entities who had financed had charged fees and the shares were sold shortly after their acquisition. The activity of Assessee was held by the ld. CIT(A) to be in an organized and systematic activity with an intention to earn profits and the activity to be in the nature of trade and therefore it was considered to be a business activity. Before us, no material has been placed on record by the Assessee to controvert the findings of ld. CIT(A). In view of the aforesaid facts and the reasoning given by ld. CIT(A), we do not find any reason to interfere in his order. As far as the treatment of the surplus of ₹ 1,29,68,597/- which is held to be “STCG” is concerned, we find that ld. CIT(A) has given a finding of fact that the underlying shares have been acquired by Assessee’s own funds and no borrowed funds have been used, the Assessee had treated the shares as “Investments” and not as “stock in trade” and the motive of trading in those shares have not been established by the A.O and merely by referring to the volume and number of transactions does not establish the motive of Assessee to be a trader of shares. These finding of fact of ld. CIT(A) has not been controverted by Revenue. In the present case, we find that ld. CIT(A) has given a clearly finding about the acquisition of shares in IPOs were with the help of part finance taken from ILFS & J.M. Financial Services and the activity of Assessee was systematic activity so as to treat it in the nature of business
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