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2017 (12) TMI 656 - AT - Income TaxNature of income - sale of shares and securities - business income or short term capital gain - Held that:- We are of the view that in assessee’s case under consideration, the Department had been accepting the same account of income as short-term capital gain in assessment years 2005-06 to 2007-08. We note that the Department has been consistently accepting the assessee as an Investor and not a trader, in past assessment years therefore, we do not uphold the order of the ld. CIT(A), following the Rule of consistency.The revenue should follow the consistency in taxing a particular income of the assessee. For that we rely on the judgment of the Hon’ble Supreme Court in RadhasoamiSatsang vs. CIT (1991 (11) TMI 2 - SUPREME Court). So, we do not uphold the order of the ld. CIT(A) and we direct the CIT(A) to treat the assessee as an investor TDS u/s 194A - addition u/s 40(a)(ia) for non-deduction of TDS against payment of interest on loan - Held that:- The computation of income contained in the return of income does not show any income under the head "Business or Profession". The Assessee has not claimed deduction of interest. So there is no question of making addition. The borrowings were not utilized in acquisition of shares. As the transactions of shares have mostly been treated as done on investment account, therefore, there is no basis for addition of interest u/s.40(a)(ia) and hence we confirm the order passed by CIT(A). Addition on account of low drawing by the assessee - Held that:- A.O. has not brought on record unusually high level of standard of living, if any. In the family of 4-5 persons drawing aggregating to ₹ 5,59,958/- appears reasonable on the facts on record. Therefore, considering the factual position, we do not find any infirmity in the order passed by the CIT(A), therefore, we confirm the order passed by the CIT(A).
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