Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 181 - ITAT MUMBAIIncome from sale of shares - capital gain or busniss income - as submitted that shares were not held as stock-in-trade and the shares were not reshuffled for long period - Held that:- In the instant case, the shares are fairly held for a period of 4 months upwards before being disposed of by the assessee on which short term capital gain was earned and very few shares were sold within a period of one month from the date of purchase. The shares on which long term capital gains were earned were held for period of 1 year 3 months. The assessee has not borrowed interest bearing funds for making investments on which STCG/LTCG was earned as no interest has been debited vis-a-vis investments portfolio of the assessee. The Revenue has accepted in preceding years gains arising from the dealing in the share as capital gains wherein the assessee was held to be an investor and principle of consistency has to be followed. Income earned by the assessee from dealing in shares is to be assessed as income from capital gains and we have no hesitation in confirming the well reasoned appellate order passed by learned CIT(A). This ground raised by the Revenue is dismissed. Loss arising from the Future and Option ( F& O) segment - Held that:- The copy of reply received from NSE was duly handed over to the assessee by the AO but the assessee could not rebut the same as no evidences are brought on record by the assessee to prove that F & O transactions were genuine. Even before us no additional evidences are filed to contend that F & O losses were genuine. Thus the loss in F & O segment claimed to have been incurred were bogus/sham loss which was being allegedly incurred only with a view to set off the same against the income from short term capital gains on sale of shares/securities in order to reduce the tax liability. Thus, we disallow this loss by holding the same to be sham and the appeal of the assessee on this ground stood dismissed and we have no hesitation in confirming the well reasoned appellate order of learned CIT(A).
|