TMI Blog2013 (12) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... judication. - I.T.A. NO.8940/M/2010 - - - Dated:- 6-2-2013 - Shri Dinesh Kumar Agarwal And Shri D. Karunakara Rao,JJ. For the Appellant : Shri Manoj Kumar, CIT-DR For the Respondent : Shri S. K. Mutsaddi ORDER Per D. Karunakara Rao, AM:- This appeal filed by the Revenue on 22.12.2010 is against the order of CIT (A)-14, Mumbai dated 16.9.2010 for the assessment year 2007-2008. 2. In this appeal, Revenue raised the following grounds which read as under:- "1. On the facts and in the circumstances of the case and in law, the Ld CIT (A) erred in deleting the addition on account of short term capital gain as the assessee had sold the entire shares ie original shares as well as bonus shares during the year and acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove submissions very carefully and facts of the case. The appellant declared short term capital loss of Rs. 9,71,391/- after adjusting short term los from sale of shares of Rs. 52,46,607/- against the short term capital gain. From the details of purchase and sale of shares, it is found that the assessee incurred loss in transaction in shares of L T and Satyam Computers. The Assessing Officer has averaged the cost of original holding over bonus shares while working out the STCG liable to tax. In this regard, the appellant submitted that the provisions of section 94(8) are only applicable to the units of mutual funds and not equity shares. The term units as defined in Clause (b) of Explanation to section 115AB are as under. "Units means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per law. Therefore, the claim of the appellant of STCL on the shares is allowable. Accordingly, these grounds of appeal are decided in favour of the appellant." 5. From the above, it is evident and an undisputed fact that the original shares were only sold in the year under consideration which is the subject matter of the addition here. Assessee rightly applied the original cost of investment while working out the capital gains on the sale of the original shares. It is also a fact that the assessee has not sold the bonus shares. In such circumstances, the view taken by the CIT (A) in para 8 above, considering the amendment brought to section 55(2)(aa)(iiia) of the Act w.e.f 1.4.1995, is proper and it does not call for any interference. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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