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2015 (8) TMI 701 - AT - Income TaxGains arising from sale of shares - chargeable under the head "Profit and gains of business or profession" instead of "Capital gains" - Held that:- Once the assessee himself had returned the loss in share transactions as business loss so that he may seek set off against the income from share transactions in future assessment years, he at this stage cannot be allowed to claim himself as an investor, only because the benefits to him for treated like that. The decision of the Hon’ble Bombay High Court in the case of “Gopal Purohit” [2010 (1) TMI 7 - BOMBAY HIGH COURT] is applicable in the case in hand. We do not find any infirmity in the order of the lower authorities in treating the assessee as a trader in share transactions. So far as the contention that the gains arising from sale of bonus shares and split shares be charged under the head “Capital gains”, we are unable to subscribe to the said contention also. Once the assessee has been treated as a trader, then the income arising from bonus shares, split shares etc. is also to be treated as business income only - Decided against the assessee. The assessee has agitated that by mistake and oversight an amount of ₹ 25,11,982/- is included in the closing stock as on 31.03.08. This plea requires factual verification by the AO. The AO is directed to verify the said claim and if the contention of the assessee is found correct, to allow the claim accordingly. Addition towards write back of unsecured loan - Held that:- The assessee has claimed that the unsecured loans written back by the assessee of ₹ 4,05,000/- had not been claimed as deduction in the year in which the loan was taken and therefore the write back of unsecured loans could not be considered as part of taxable income under section 41(1) of the Act. The Ld. CIT(A), however, held that any liability of the earlier years which has been written off must be shown as income in the year in which it is written off. We do not find any infirmity in the order of the Ld. CIT(A) in this respect. Accordingly, the said ground is also decided against the assessee.
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