Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (7) TMI 535 - AT - Income TaxProfit on sale of investment - Long Term Capital Gain and Short Term Capital Gain or Business income - the assessee has contended that all the share transactions are under the head 'investment' and not for trading purposes - Held that:- Considering the totality of the facts and circumstances of the case and respectfully following the orders of the Tribunal in the case of the assessee itself for earlier years and the decision of CIT Versus Gopal Purohit[2010 (1) TMI 7 - BOMBAY HIGH COURT] wherein held that delivery based transactions in the present case, should be treated as those in the nature of investment transactions and the profit received therefrom should be treated either as short term or, as the case may be, long term capital gain, depending upon the period of the holding C.I.T.(A) was justified in directing the A.O. to accept the LTCG of Rs.2,50,40,713.45 and LTCG (with indexation) of Rs.92,393.20. Considering the period involved in purchase and sale of the shares relating to some of the share transactions within short span of days, that is to say within a period of one month or so, considered view that those transactions be re-examined by the A.O. to see as to whether the purchases and sales of those shares were carried out by the assessee with an intention for investment purposes or for share trading purposes after giving due opportunity of hearing and considering such evidences as may be produced by the assessee - Thus STCG in respect of shares, which were held by assessee for a period of 30 days or more be accepted. However, in respect of shares which were held by the assessee for a period of less than 30 days, the A.O. will examine the same as to whether those shares were transacted for investment purposes or trading purposes after giving opportunity of hearing to the assessee. Disallowance u/s. 14A r.w.r.8D of I.T. Rule - Held that:- The authorities below were not justified to apply Rule 8D of the Rules for the purpose of making disallowance u/s. 14A as the dividend income shown by the assessee of Rs.9,85,958/- is exempted from tax u/s. 10(34). Be that as it may, it will be reasonable to make disallowance of Rs.12,000/- as per Sec. 14A as the dividend income of Rs.9,85,958/- is exempt from tax u/s. 10(34). Hence the cross-objection of the assessee is allowed in part by restricting the disallowance to Rs.12,000/- - Hence, the cross-objection of the assessee is allowed in part.
|