TMI Blog2011 (5) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... generated by dealing in shares and securities by the assessee was to be treated as income from Capital Gain and not income from business as was assessed by the AO. 3. The appellant craves leave to add, alter or amend any/all of the grounds of the appeal before or during the course of the hearing of the appeal. 2. The assessee company is recognized by the Reserve Bank of India as non-banking financial corporation. The company is having an investment portfolio and has held certain shares in stock-in-trade. During the year under consideration vide resolution dated 22nd April, 2004 it was resolved that stock-in-trade amounting to ₹ 79,73,293.15/- held by the company in shares/ securities of other bodies corporate converted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Bank of India 500 289885/- 13. Tata Power Co. Ltd. 1250 471437/- 14. TV Today Network Ltd. 2500 237500/- 15. Tata Tele Services Ltd. 20000 324000/- 16. Talbros Automotive Components Ltd. 82143 2063843/- 17. VSNL Ltd. 1600 285680/- 18. Wipro Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umed explicity the character of business and he treated the gain there from as business income of the assessee. 4. At the outset it was pleaded by ld. Counsel of the assessee that on the facts of the case the proposition is duly covered by the decision of Tribunal in another case. He in this regard referred to the decision of Tribunal dated 18.2.2011 in the case of DCIT Vs. M/s Chaudhary Associates (ITA No. 1241/Del/2010), wherein on similar facts the order of CIT(A) was upheld vide which the impugned relief was granted to the assessee. He has produced before us a copy of the said order. A copy was also given to ld. DR. 5. However, on the other hand, ld. DR relying upon the order of AO pleaded that relief has wrongly been given by ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -in-trade upto 31.3.2004 at cost price as on 1.4.2004 as under:- Sl. No. Name of the company Quantity Amount 1. Morgain Stanlay 5000 30000/- 2. Nestle India Ltd. 500 303310/- 3. Biocon Ltd. 1250 393750/- 4. HDFC Ltd. 400 245536/- Total 7150 972596/- 4. Assessing Officer further noted that apart from the shares of the four companies transferred to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31st of March, 2004. It is submitted by the counsel of the appellant that the difference between purchase price of the scrip and the market value as on 31st of March, 2004 have been taken into account while working out the profits for the year ending as on 31st of March, 2004. It is clear from the balance sheet for the financial year 2003-04 that the market value of the shares as on 31st of March, 2004 has been taken into account by working out the closing stock of shares and this has been taken into account for working out the profits for that year. The market value as on 31st of March, 2004 has been taken as the cost of acquisition of these shares and the difference between cost of acquisition and the sale price has been offered for taxat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the company in the trading account were transferred to the investment portfolio, however, the trading in mutual funds continues to be business activity of the company. In view of the facts discussed above and decision of the Hon ble ITAT in the case of ACIT vs. Bright Star Investment Pvt. Ltd. and M/s Sarnath Infrastructure Pvt. Ltd. it is held that the appellant is a regular investor and under no stretch of imagination, it can be treated as trader in shares. 6. We have heard the rival contentions in light of the material produced and precedent relied upon. It is observed that from the facts of the case shares will held in stock in trade were converted into investments w.e.f. 1.4.2004. The value of acquisition has been taken to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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