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2015 (10) TMI 1871 - ITAT KOLKATA

2015 (10) TMI 1871 - ITAT KOLKATA - TMI - Profit arising out of sale of shares - AO treated it as undisclosed short term capital gain confirmed by CIT(A) - Held that:- The entire premise of the lower authorities i.e. AO and the CIT(A) for treating the assessee’s long term capital gains as short term capital gains for the reason that the payment for purchase of shares was made after dematerialization of shares. We find that the AO as well as CIT(A) admitted that these shares have been transferred .....

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e 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 as LTCG. Decided in favour of assessee. - ITA No. 1376/Ko .....

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is order dated 30.12.2009. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in treating the profit arising out of sale of shares as undisclosed short term capital gain. For this, assessee has raised following two grounds: "1. That Ld. CIT(a) has erred in confirming the finding of the Assessing Officer in not considering the gains on the sale of shares of ₹ 24,16,994/- as long term capital gains. 2. That the Ld. CIT(A) has erred in .....

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laimed 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 .....

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has held that the shares transaction reflected in the Contract Note dated 16.06.2004 were not reflected in the stock exchange and that the payment for the purchase of the shares was made after 3.10.05, and further that these shares had been transferred in the Demat account of the Appellant only on 3.10.05 therefore there was no question of income from the sale of shares being considered as Long Term Capital Gain. The Appellant on the other hand claims that the shares had been purchased on 16.06. .....

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lify for treating the income as LTCG. The Appellant has also claimed that there was no bar in trading of shares in physical form directly outside the stock exchange and 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 2,1 .....

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