TMI Blog2013 (5) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer, who shall examine all the documents submitted before him in this regard and consider the issue afresh keeping in view the parameters laid down by the Hon'ble Jurisdictional High Court in case of PVS Raju and Anr. V. Additional CIT, [2011 (7) TMI 818]. Needless to mention the Assessing Officer shall afford a reasonable opportunity of being heard to the assessee before finalizing the proceedings. - ITA No.1272/Hyd/11 - - - Dated:- 8-2-2013 - Shri Chandra Poojari And Shri Saktijit Dey,JJ. For the Appellant : Shri Abhay Singh For the Respondent : Shri Ch. V. Gopinath ORDER Per Saktijit Dey, Judicial Member:- This appeal filed by the assessee is directed against the order of the CIT(A)-V, Hyderabad dated 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal relates to rejection of the assessee's claim to treat the income earned from sale of shares as long term capital gain. 4. Briefly the facts are, a return of income was filed by the Legal Representative of the assessee for the assessment year under dispute declaring total income of Rs. 15,18,607/-. In course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee had purchased 6500 shares of M/s Khoobsurat Ltd. on 16/04/2004 through stock exchange member Shri Suresh Kumar Somani of Calcutta at a price of Rs. 21.85 per share. Out of the 6500 shares, the assessee during the impugned assessment year had sold 4500 shares at a price of Rs. 21,68,221/-. As observed by the Assessing Officer in the assessment orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eponderance of probability points to the fact that the assessee had some kind of inside information and obtained the shares of the company, which is rather unknown. The CIT(A) further held that within a span of one year the share price of the company jumped to Rs. 488 per share and 6500 shares were sold by the assessee, which proves the fact that it was clearly a business transaction with no intentions whatsoever to obtain any dividend or to make long term investment. 7. Aggrieved the assessee is in appeal before us. 8. The learned counsel for the assessee submitted before us that the assessee purchased 6500 shares in April, 2004 and the shares were not sold immediately but were held for more than a year and the assessee sold 4500 share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the income under the head 'capital gain' is that the transaction was not routed through the Demat account. Undisputedly, as it appears from the record apart from the solitary transaction of purchase of 6500 shares of M/s Khoobsurat Ltd., the Assessing Officer has not found any other share transaction carried on by the assessee. It is also a fact that the shares were held for more than one year by the assessee and all the shares have not been sold but 2000 shares were still retained by the assessee. Therefore, only because the assessee could not produce the annual report of the company it cannot be presumed that the assessee has entered into the share transaction as a trading activity with profit motive. The Assessing Officer before treat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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