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2014 (1) TMI 831 - AT - Income TaxAssessability of income - Profits on sale of shares and mutual fund units – Profits and gains from business of capital gains – Held that:- The gains on sale of both securities and the units are taxable under the head ‘capital gains’ and not under the head ‘profits and gains from business or profession’ as held by the revenue - the acquisition of the shares and investment for the purpose of ‘control and management’ envisages the investment activity and not the business activity - Revenue has not brought anything to demonstrate that the facts are different in this year – decided in favour of Assessee. Applicability of section 14A of the Act r.w Rule 8D of the Rules – Held that:- The rules are inserted subsequently and applied prospectively – Relying upon Godrej and Boyce Mfg.Co. Ltd. Vs. DCIT and Anr. [2010 (8) TMI 77 - BOMBAY HIGH COURT] - CIT(A) fell in to error in assuming the jurisdiction of Rule 8D of the Income Tax Rules 1962 for the AY – thus, the enhancement has to go and therefore, the assessee wins on this issue – matter remitted back to the AO for proper adjudication – Decided partly in favour of Assessee.
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