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2010 (8) TMI 699 - AT - Income TaxExemption u/s 10(38) - Assesse contended that shares of M/s. India Cements Ltd. (ICL) held by the assessee-company were in the nature of capital assets and transfer of such shares would result in long-term capital gains which is exempt in terms of section 10(38) of the Act - Addition made by AO as treating it as 'income from business' - As per MOA of the assesse comapnay primary business of the assessee is to deal in shares/stocks and securities - Hence such activity is to be assessed as 'business income' only and it cannot fall under any other head of 'income' - Held that magnitude of shares held by the assessee is high. But there is no purchase of the shares from the open market - frequency in respect of the sale of shares is only two which cannot be said to be frequent and this transfer is also within the group companies - assessee has been disclosing before various other statutory authorities like the SEBI that it is in control and it is the promoter of ICL clearly shows that the intention of the assessee is not to trade in the shares of ICL - shares have been held by the assessee for acquiring and maintaining a controlling stake in the company - sale of the shares of ICL held by the assessee is in the nature of sale of capital asset and not in the nature of stock-in-trade is upheld. In the circumstances, the Assessing Officer is directed to grant the benefit of exemption under section 10(38) - Appeal of revenue of dismissed.
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