TMI Blog2011 (12) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessee has shown total 263 transactions during the relevant assessment year, out of which 209 transactions were shown as short-term and the remaining 54 as long-term - If the assessee is purchasing shares and credited in the investment portfolio then it has to be treated on account of investment of long-term capital/short-term capital as the case may be, and if the share transactions are shown in trading portfolio, then of course the transaction has to be treated as in the nature of business and adventure - If it is found that sale of shares has been made within 30 days, then of course AO may treat this transaction as business transaction. - ITA No. 239/Jd/2008; - - - Dated:- 9-12-2011 - R.K. Gupta, N.L. Kalra, JJ. N.R. Mert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also confirmed the action of the AO. 5. After considering the submissions and perusing the material on record, we find that assessee deserves to succeed in this ground. The Benches of the Tribunal are taking a consistent view that where the sale took place through agreement then provisions of s. 50C are not applicable. In case of Carton Hotel (P) Ltd. vs. Asstt. CIT (2009) 122 TTJ (Lucknow) 515: (2009) 21 DTR (Lucknow) 165: (2010) 35 SOT 26 (Lucknow)(UO), the Lucknow Bench of the Tribunal has taken a view that where such registration does not take place by paying stamp duty, that case would be covered under s. 45(3) and not under s. 50C. Accordingly it was held that the value recorded by firm in its books would only be full value of con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares, separate ledgers are kept for each script purchased and sold. The assessee has debited brokerages paid also. The AO also noted that the assessee was involved in speculation of shares also. The AO also noted that assessee has taken loan of Rs.1,49,000 during the year. After noting all these facts, a show-cause notice was given to the assessee that why income arising from share transaction should not be treated as business income on the given facts. After considering the submissions and perusing the material on record, the AO held that these are business transactions. Accordingly he denied the benefit of long-term capital gain and loss claimed on account of long-term capital loss against profit on account of sale of plot. The learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions are made within 30 days then these may be treated as business transactions and other transactions may be treated as on account of investment. 8.2 If there is any loss on account of investment in shares then of course the loss if any has to be set off against the capital gain shown on account of sale of plot as per provisions of law. We order accordingly. 9. Next issue is against confirming 20 per cent of ad hoc disallowance out of various business expenses. 10. The AO disallowed 20 per cent of expenses for want of proper vouchers. The learned CIT(A) confirmed the same. 11. After considering the submissions, we are of the view that these disallowances are on higher side. Therefore, we feel that if 10 per cent disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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