Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 32 - AT - Income TaxTransaction in shares/mutual fund by engaging PMS - whether an investment activity and resultant gain/loss was assessable under the head Capital Gains or business income - Held that:- The issue stands decided in favour of the assessee and against the revenue by the decision of the Tribunal in assessee’s own case for A.Y.2008-09 which has been followed by the CIT(A) that activity of transaction in shares/mutual funds by engaging PMS was an investment activity and therefore the resultant gain was assessable under the head capital gains. Accordingly, the appeals filed by the revenue were dismissed. - Decided in favour of assessee Disallowance u/s.14A - CIT(A) deleted the addition - Held that:- No infirmity in the order of the CIT(A). The learned CIT(A) has given a categorical finding that expenditure on PMS has not been claimed by the assessee and there does not remain any other expenditure other than this expenditure, therefore, no disallowance u/s.14A r.w. Rule8D can be made. The above factual finding given by the learned CIT(A) could not be controverted by the learned DR - Decided in favour of assessee Treating the stock-in trade of shares as investment - treatment merely on the basis of a notice of closure u/s.176(3) - Held that:- We find identical issue had come up before the Tribunal in the case of the assessee for the A.Y. 2007- 08 wherein held that the finding given by the learned CIT(A) that assessee has duly given the notice of discontinuation of business vide letter dated 7-11-06 filed before the AO on 12-04-06 which is within the prescribed period of time as per section 176(3) of the Income Tax Act could not be controverted by the learned DR. Further it has been categorically submitted by the assessee before the lower authorities that he has discontinued the share trading business and the closing stock in shares as on 31-03-06 has been transferred to his capital account at cost and the same also remains uncontroverted.It has been held by the Mumbai Bench of the Tribunal in the case of ACIT Vs. Bright Star Investment Pvt. Ltd. (2008 (7) TMI 442 - ITAT BOMBAY-H ) that receipt from sale of shares after conversion from stock in trade to investment has to be held as capital gain in absence of provision like sec. 45(2)- Decided in favour of assessee
|