TMI Blog2015 (10) TMI 1871X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.10.2005. We find that the brokers have given contract notes for purchase of these shares dated 16.06.2004 and transferred in the name of the assessee on 23.08.2005. What is the material date for date of transaction here by way of contract note the shares were purchased on 16.06.2004 and i.e. the date to be reckoned for taking transaction of shares and if that date is taken as transfer date the shares are sold on 14.02.2006 which is more than 12 months. Once the shares are held by assessee for more than 12 months, the profit arising out of the same is to be assessed as LTCG. Accordingly, we allow the appeal of the assessee and reverse the orders of the lower authorities. The AO will assess the profit arising out of the sale of shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income for AY 2006-07 declared Long Term Capital Gains at ₹ 24,16,994/- and claimed exempt u/s. 10(38) of the Act. On investigation, the AO found that the assessee as under: 3. The submission of the Appellant and the evidences as well as case laws relied upon by him have been considered. It is seen that issue is of treatment of income on sale of shares of M/s. Polylink Polymers Ltd. of ₹ 24,16,994/- in F.Y. 2005-06 which has been shown as LTCG by the Appellant and not accepted by the AO. The AO has considered the same as STCG on the basis of holding period of these shares. The dispute here is not of sale proceeds but the date of purchase of shares and consequently the holding period of the relevant shares to determine wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all evidences had been given to the A.O. in support of its claim including details of payments for purchase of shares, contract notes etc. The dates on which these shares were sold are as under: Date Qty. 04.10.2005 48,550 05.10.2005 51,450 06.10.2005 2,250 07.10.2005 20,000 04.01.2006 15,300 09.01.2006 1,450 10.01.2006 2,150 16.01.2006 4,900 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Account of the assessee on 03.10.2005, which is a categorical finding of the AO. Only the payment is made after the transaction of the shares to DEMAT Account on or after 03.10.2005. We find that the brokers have given contract notes for purchase of these shares dated 16.06.2004 and transferred in the name of the assessee on 23.08.2005. What is the material date for date of transaction here by way of contract note the shares were purchased on 16.06.2004 and i.e. the date to be reckoned for taking transaction of shares and if that date is taken as transfer date the shares are sold on 14.02.2006 which is more than 12 months. Once the shares are held by assessee for more than 12 months, the profit arising out of the same is to be assessed as L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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