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2016 (2) TMI 161 - AT - Income TaxSale of shares - Short Term Capital Gain/Loss and Long Term Capital Gain /Loss - Held that:- Assessee is a regular investor and the assessee has shown the income of Short Term Capital Gain/Loss and Long Term Capital Gain /Loss from the sale of shares which is being shown consistently since preceding several year’s and the same was accepted in the preceding years by the Revenue. We have observed that the assessee has also valued the investment in shares at cost in his books of accounts and not ‘cost or market value’ which ever is lower which is again indicative that the shares are held by the assessee as investment. The shares purchased and sold are all delivery based transactions on which STCG/STCL or LTCG/LTCL is earned. The assessee has also offered for tax , income from sale of shares as speculative profits (net) of ₹ 3,03,915/- under the Act where the transactions are not backed with delivery. The assessee is partner in M/s Dia Export Corporation which is engaged in trading in diamond and assessee has made substantial investment in said partnership firm from which receivable as on 31-03-2010 stood at ₹ 6.74 crores and has substantial income from the said firm which stood at ₹ 32,88,053/- for the assessment year 2010-11 which again indicates that it must be occupying substantial time of the assessee as the assessee has also contended that he is working partner of the said firm M/s Dia Export Corporation . We have also observed that the assessee has not borrowed any funds for buying and holding the shares which also indicates that the assessee is an investor. In our considered view keeping in view facts and circumstances of the case , the CIT(A) has rightly classified and distinguished whereby the shares transacted repeatedly within short period of time within few days was held to be business income of ₹ 8,03,879.90 as per chart above in preceding para’s while the rest of income/gain from sale of shares is classified as STCG or LTCG and we do not find any infirmity in the well reasoned orders of the CIT(A) which we uphold. - Decided against revenue
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