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2014 (7) TMI 961 - AT - Income TaxBusiness income treated as STCG and LTCG Share transactions Held that:- The assessee is maintaining two separate port folios, one in respect of trading and other in respect of investments - the assessee has paid STT but in respect to short term capital gain STT was not paid - investment in shares and mutual funds is out of assessee's own capital - The assessee is maintaining separate port folios for investment in shares and trading in shares - Following the decision in CIT Vs. Gopal Purohit [2010 (1) TMI 7 - BOMBAY HIGH COURT] - assessee is engaged in two different types of transactions namely, investment in shares and dealing in shares for the purposes of business and held that the delivery based transactions are to be treated as investment transactions and the profit received therefrom is to be treated as short term or long term capital gain depending on the period of holding of shares and that there ought to be uniformity in treatment and consistency in various years the order of the CIT(A) is upheld Decided against Revenue. Bad debts written off as business loss Held that:- Loss which was incurred by assessee is a business loss or bad debt - The provision of section 28 read with section 4 of the Act imposes a charge on profit and gains of any business or profession carried on by the assessee - The business profit is to be computed in accordance with the provisions of section 30 to 43(c) and this section deals with deduction and allowances - The scheme of this provision is that profits and gains should be computed subject to certain express deduction and allowances and to certain express provisions of deductions - The list of allowances incurred in this section is not exhaustive or all allowances which can be made in ascertaining the profit of the business taxable u/s. 28 of the Act and an item of loss or expenditure incidental to business may be deducted in computing profits and gains of business or profession, even if it is not falling under any of these sections. Relying upon Badrinath Daga Vs. CIT [1958 (4) TMI 2 - SUPREME Court] - the assessee who was in the business of trading and investment in shares, had advanced a sum to a share broker with whom the assessee has regular dealings in earlier years and the advance made were during the course of assessee's business against which assessee had given shares, which are more than the value of the advance given as on that date - due to scam in the market there was a loss to the assessee which was directly connected to the assessee's business - it should have been allowed as business loss by the AO Decided against Revenue.
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