TMI Blog2014 (6) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld – Decided in favour of Assessee. Chargeability of the gains on sale of shares/units on proper head of income – Held that:- The gains are short term capital gains and they are earned on the sale of shares/units – the amount even if taxed under the head “Business Income”, there is no tax implication, and thus, there is no tax yielding - concealment of income - no concealment of income is made on this ground. Reassessment relates to the capital nature – expenditure for amalgamation of work - Held that:- the details were available as disclosed by the assessee to the AO and the assessment was completed without making addition on the account after examining the relevant details - There is no defect of disclosure on the issue also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income or during the regular assessment proceedings, or there is no escapement of income considering the similarity of tax rates (reason 2). Further, it is the submission of the Ld. Counsel that the Assessing Officer (A.O.) attended to this issue during the regular assessment proceedings and completed assessment u/s. 143(3) without making any additions. Referring to each of the issues recorded in the reasons, the Ld. Counsel brought our attention to the first issue relating to the application of the provision of section 2(22)(e) of the Act to the sum of Rs.22.63 crores. In this regard, referring to the said reason, the Ld. Counsel mentioned that the A.O. relied/referred to the Form 3CD report, which was filed by the assessee along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue relied heavily on the reassessment order of the A.O. and the ld. CIT(A) and mentioned that the reassessment should be upheld. She relied on the Allahabad High Court judgment in the case of EMA India Ltd. vs. ACIT [2009] 226 CTR 659 (All) for the preposition that valid reassessment made by the A.O. is valid when there is no application of mind by the A.O. during the making of the regular assessment. 4. We have heard both the parties on this issue and perused the orders of the Revenue Authorities and the material placed before us. After assimilating the above referred facts and arguments, we find that the arguments made out by the Ld. Counsel deserve merit on this issue. It is undisputed fact that the material/or documents filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in para (8) above, the Short Term Capital Gain received by the assessee amounting to Rs.3,90,155/- is treated as Business Income . However, the same will not have any impact on the tax payable as well as in computation of total income. Reading the above, the Ld. Counsel mentions that the said amount even if taxed under the head Business Income , there is no tax implication, and therefore, there is no tax yielding - concealment of income. There is no dispute on the fact that there is no concealment of income on this account. 6. The ld. DR has so special argument to make on this issue except relying on the orders of the Revenue Authorities. 7. On hearing both the parties and perusing the facts placed before us and after perusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reassessment order made by the A.O. on this issue is not sustainable. We also find the decision relied upon by the ld. DR from the judgment of the Allahabad High Court does not relate to the provision of section 147 of the Act. Therefore, the same is distinguishable on facts. 9. Considering the above, we are of the opinion that the legal issue raised by the assessee relating to the validity of the reassessment is decided in favour of the assessee. Therefore, the adjudication of the other issues raised by the assessee becomes an academic exercise. Therefore, the said grounds are dismissed as academic. 10. In the result, the assessee s is partly allowed Order pronounced in the open court on 2nd June, 2014. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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