Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 956 - AT - Income TaxGain on sale of shares - Business income or Capital Gains - claim of exemption u/s.10(38) in respect of sale of shares denied - assessee is in the business of purchase and sale of IPOs, the said transaction done by the assessee is an one off transaction, the same is liable to be treated as an “Adventure in the nature of trade”- HELD THAT:- It is an admitted fact that the assessee is doing the business of purchase and sale of shares. As pointed out by the ld. Sr. DR the assessee is doing purchases in IPOs. Thus, there is no dispute that the assessee earns her income from transaction in shares. Just because the assessee has shifted from the IPOs and has made a purchase of the shares in M/s Panchshul Marketing Ltd., would not shift the head of income from “capital gains” to the “Adventure in the nature of trade”, insofar as the assessee is an investor in the shares and is not in the business of dealing in shares. This being so, the decision relied on by the ld. Sr. DR would no more survive for consideration. As following the decision of Deepansu Mohapatra [2021 (12) TMI 1425 - ITAT CUTTACK] which has also been affirmed by the Hon’ble Jurisdictional High Court of Orissa in the appeal filed by the revenue [2023 (2) TMI 392 - ORISSA HIGH COURT] and also the decision of Rashi Agrawal [2023 (5) TMI 851 - ITAT CUTTACK] the addition as made by the AO and as confirmed by the CIT(A) in respect of the claim of exemption u/s.10(38) of the Act in respect of sale of shares of M/s Kailash Auto, stands deleted. Decided in favour of assessee.
|