Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 405 - AT - Income TaxNature of income - profit from sale of shares - Capital gain or business income - Held that:- The accounting treatment in the books of accounts of the assessee cannot be rejected. The books of accounts are essential evidences. The recording of transactions in the books is a primary evidence of the intention for which such investment or purchase has been made. There has to be material to reject such primary evidence. The same cannot be rejected merely because the AO has a different view. A transaction has to be seen from the perspective of the person who has entered into that transaction. In the present case, the assessee all along has been making investment and accounting for the same as investments. This stand has been accepted in the past and there is no reason to differ with the same in the current year. The accounting treatment given in the current year being the same as in the earlier years, the AO was not justified in altering the same. The aforesaid view has also been upheld in the case of CIT vs. Girish Mohan Ganeriwala [2002 (10) TMI 61 - PUNJAB AND HARYANA HIGH COURT] whereby it was held that profit from sale of shares is assessable as capital gain more so, when such profits were assessed as capital gain in earlier years - Thus AO is directed to treat the income as capital gain declared by the assessee as against business income. Disallowance on account of traveling expenses - assessee before the AO has taken the stand that it has paid fringe benefit tax at the rate of 20% - Held that:- Now it is a settled position of law that no disallowance can be made once expenses are exigible to FBT. See BG Shirke Construction Technology Pvt. Ltd. Vs. CIT [2012 (10) TMI 435 - ITAT PUNE]
|