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2017 (5) TMI 1666 - ITAT PUNEGains earned from share transactions engaging PMS [Portfolio Management Service] - characterization of income - correct head of income - capital gain or busniss income - contention of the assessee is that the assessee has invested lump sum amount through PMS - HELD THAT:- Commissioner of Income Tax (Appeals) has accepted the contentions of assessee by following the order of Tribunal in the case of KRA Holding & Trading P. Ltd.[2011 (5) TMI 498 - ITAT PUNE] and ARA Trading & Investments P. Ltd. [2009 (8) TMI 815 - ITAT PUNE]. The assessee had availed discretionary Portfolio Management Services to manage its investment activities. Under such circumstances the discretion to invest in specific stock, the quantum of investment, time of investment /disinvestment is entirely of Portfolio Manager. Similar issue had come up before the Co-ordinate Bench of the Tribunal in the case of Shri Apoorva Patni [2012 (9) TMI 828 - ITAT, PUNE] wherein after considering the decisions rendered in the cases of KRA Holding & Trading P. Ltd. Vs. Dy. Commissioner of Income Tax (supra) and ARA Trading & Investments P. Ltd. Vs. Dy. Commissioner of Income Tax (supra) held that the profit arising on investment carried out by the assessee through PMS does not result in gain assessable under the head business income. - Decided in favour of assessee.
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