Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 237 - AT - Income TaxGain earned on sale of investments - sale of shares - Capital gain or business income - assessee is not trading in shares and securities and shares in these companies were held as investment in the balance sheet - dept. alleged that that shares were purchased as part of business strategy with clear intention to sell them at profit - HELD THAT:- Assessee invested in shares of specific healthcare provider companies, as mentioned hereinabove during years under consideration. From objectives of assessee in Memorandum of Association placed in paper books, it is observed that assessee was to purchase, lease or otherwise acquire, establish, maintain, operate, run, manage or administer hospitals, Medicare, health care, diagnostic, healthcare and research centres. Assessee thus invested in these companies with clear intention of furthering primary objective in expanding its business in healthcare sector. Further, it is also not denied that, these investments in specific companies are part of business agreement, as per its commitment to subscribe to shares, subject to fulfilment of certain conditions. Further, it is observed that assessee sold shares invested in these companies to India Advantage Fund-V, a trust holding majority of shares of assessee. To verify actual intention of assessee behind these investments, we called for agreements entered into by assessee with these companies. Ld.AR produced all agreements relevant for years under consideration, and also submitted that, these were not considered by Ld.AO/Ld.CIT (A). We are therefore inclined to set aside this issue back to Ld.AO. Ld.AO shall verify agreements and ascertained true intention of assessee behind such huge investments. Assessee shall by way of corroborative evidences establish its claim and if satisfied Ld.AO shall consider the issue on the tests laid down by various courts relied upon by assessee. Appeal filed by assessee allowed for statistical purposes.
|