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2016 (5) TMI 153 - AT - Income TaxShort term capital gains OR business income - Held that:- The assessee has always valued its investments at cost price and not market price. Its short term capital gains read the impugned sums of ₹ 2,59,43,473/- comprising a sum of ₹ 2,95,48,114/- from a single scrip namely M/s. Reliance Natural Resources Ltd. purchased on 5th April, 10th May, 23rd May and 2nd July 2007 (this last day involves three transactions). This followed sale of the scrip involving all shares on 04-03-2008. The same makes it clear that the assessee’s holding period of these shares ranging from 8 to 11 months during which not even a single share was sold. If we exclude this scrip, what is left is net result of loss of ₹ 36 lacs approximately. We confronted the Revenue with all this factual evidence. It fails to controvert the lower appellate authorities’ findings that the assessee has always been treating its shares and mutual funds in question as investments by maintaining a separate account accepted for the last many years. This is not the Revenue’s case that assessee has been engaged in any intra-day sale/purchase transactions. We repeat that assessee has carried out 85 purchase transactions and 67 sale transactions during the relevant previous year. Meaning thereby that there is no transaction carried out in more than ˝ of the relevant previous year. We conclude in these peculiar facts and circumstances that the CIT(A) has rightly treated assessee’s profits of ₹ 2,59,43,473/- a short term capital gain and not business income. - Decided against revenue
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