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2014 (8) TMI 238 - AT - Income TaxSale of shares – Income from business or STCG – Held that:- Assessee has furnished before us the details of transactions in shares made by the assessee to show that the nature of transactions including their frequency, holding period etc. was similar in both these years – Relying upon CIT v/s Gopal Purohit [2010 (1) TMI 7 - BOMBAY HIGH COURT] - it was open to the assessee to maintain two separate portfolios, one relating to investment in shares and another relating to business of dealing in shares - there should be uniformity in treatment given to transactions in shares and the rule of consistency should be followed when facts and circumstances for different years are identical – the AO is directed to accept the claim of the assessee for Short Term Capital Gain on sale of shares – Decided in favour of Assessee. Penalty u/s 271(1)(c) – Held that:- Assessee pointed out that from the assessment order passed by the AO, even after making the corresponding addition in respect of which the penalty is imposed, the total income of the assessee as computed as per the normal provisions of the Act was less than the book profit computed u/s 115JB and the assessee thus was finally assessed for the year under consideration on the basis of book profit as per the section 115JB of the Act – Relying upon CIT vs. Nalwa Sons Investment Ltd. [2010 (8) TMI 40 - DELHI HIGH COURT] - when assessment was made on income computed u/s115JB and tax had been paid on income so computed, penalty u/s 271(1)(c) would not be imposed with reference to addition that would have been made while making assessment under normal procedure – Decided in favour of Assessee.
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