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2016 (2) TMI 596 - ITAT DELHI

2016 (2) TMI 596 - ITAT DELHI - TMI - Sale of shares - normal business income OR short term capital gain - Held that:- As in terms of the Circular no. 1/2007 of CBDT also, neither the frequency of trading in shares nor the volume indicate that the appellant had been engaged in regular and significant trading in shares for itself. An investor may have two portfolios, one for trading purpose and another for investment. Evidently, the appellant had not made transactions except the single transactio .....

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s Standards" newspaper, which was clearly in the name of appellant company only and therefore the suspicion of the appellant that it may have been for the purpose of the entire group and not for the appellant company only, was based on incorrect facts. The appellant company therefore, meets all the requirements under section 37(1) of the Act in making claim of the advertisement expenses, which were for the purpose of business promotion of the appellant company - Decided in favour of assessee - I .....

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he Ld. CIT(A) has erred in deleting the addition of ₹ 12,34,704/- on account of sale of shares as normal business income instead of short term capital gain. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 11,78,761/- made on account of advertisement expenses. 3. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing. It is prayed that the order of the Ld. CIT(A)-XV, be .....

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by the copies of final accounts and tax audit report u/s. 44AB of the I.T. Act. The return was processed u/s. 143(1) of the Act. The case was selected for scrutiny assessment and notice u/s. 143(2) of the Act was issued on 24.8.2009 which is duly served on the assessee. In response thereof, the Authorised Representative alongwith other officials of the company attended the proceedings and filed the detailed asked for, produced books of accounts which is examined on test checked basis; written s .....

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sessee and deleted the addictions in dispute. 4. Aggrieved with the impugned order, the Revenue is in appeal before the Tribunal. 5. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal. 6. On the contrary, Ld. Authorised Representative of the assessee has relied upon the order of the Ld. CIT(A) and stated that the order of the Ld. CIT(A) is a well reasoned order and therefore, the same may be upheld and Revenue s appeal may be dismissed according .....

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No.1 of the appeal, I find that the appellant is a registered stock broker in NSE and BSE, and primarily it is nature of business to trade in shares on behalf of its clients. The appellant has applied for allotment of shares M/s OMAXE Limited through its initial public offer (lPO). The same was entered into the investment register as required under the Companies Act. The appellant held on the investment for over one month after which the same was sold. Other than this transaction, the appellant .....

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ant had been engaged in regular and significant trading in shares for itself. The Ruling of the AAR in the case of M/s Fidelity Group clearly shows that an investor may have two portfolios, one for trading purpose and another for investment. Evidently, the appellant had not made transactions except the single transaction of sale and purchase of shares M/s OMAXE Limited, which were allotted to it on all application at the time of IPO. Therefore, keeping in view the above facts, the aforesaid tran .....

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issue no. 1, and uphold the finding of the ld. CIT(A) on this issue. Therefore, the ground no. 1 raised by the Revenue stands dismissed. 8. We find that Ld. First Appellate Authority has elaborately discussed the issue no. 2 in dispute by considering the submissions of the Ld. Counsel of the assessee and adjudicated the issue no. 2 in dispute as under vide para no. 7 & 7.2 at page 9 & 10 of his impugned order. "7. Regarding the Ground No.3 of the appeal, I find that the Ld. AO has m .....

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