Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 675 - AT - Income TaxTransaction in shares - short term and long term capital gains v/s business income - CIT(A) direct the A.O. to accept the claim of the appellant by accepting the long term and short term capital gain admitted by the appellant - Held that:- From the record, we found that assessee was consistently investing in shares. She has neither traded in the investment securities nor she had any intention to convert her investment into stock-in-trade. Only the intention of the assessee was to earn capital gain on appreciation of value of shares and dividend income. In the assessee’s own case for the A.Y.2006-07, the department has accepted assessee’s claim of capital gain amounting to ₹ 24,79,925/- for the A.Y.2006-07. The assessee was consistently following the method of accounting shares as investment. A categorical finding has also been recorded by the CIT(A) to the effect that shares were shown as investment in the balance sheet which indicated the intention of the assessee to hold the same as investment. It is also not the case of the AO that assessee has valued the shares at the cost of market price at the end of the year. On the contrary, the shares were recorded in the balance sheet on the cost of acquisition only. The intention of assessee, period of holding, frequency of transactions are to be considered in totality while holding that profit arose on sale of shares is capital gain on business income. After applying various judicial pronouncements as well as CBDT Circular No.4/2007, dated 15th June, 2007, the CIT(A) has recorded a categorical finding that profit arose on sale of shares are liable to be taxed as short term and long term capital gains depending on the period of holdings. No reason to interfere in the findings recorded by the CIT(A), which resulted into treatment of profit on sale of shares as capital gains in place of AO’s treatment of business income. - Decided against revenue.
|