Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri Atul A Shah Versus Assistant Commissioner of Income Tax- 25 (3) , Bandra Mumbai

Purchase and sale of shares - business income or Capital gain computation - Held that:- There were no borrowings by the assessee and no interest was paid. The number of transactions has also come down in the impugned assessment year as compared to the preceding assessment year. The average period of holding was 95 days and number of transactions were 70 , while for assessment year 2005-06 it was 70 days and 119 transaction while for assessment year 2006-07 , the average period of holding was 129 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ins while framing assessment u/s 143(3) of the Act for the assessment year 2005-06. The factual matrix in the instant assessment year under appeal is similar to the preceding assessment years i.e. 2005-06 and 2006-07 and we do not find any reasons of deviating from the settled position in this year. Keeping in view of the above facts and circumstances of the case, we are of the considered opinion that principle of consistency has to be maintained and followed in this year as facts are almost sim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Shri Rahul K. Hakani For The Revenue : Shri Aarsi Prasad ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee, being ITA No. 975/Mum/2013, is directed against appellate order dated 29th November, 2012 passed by learned Commissioner of Income Tax (Appeals)- 35, Mumbai (hereinafter called the CIT(A) ), for the assessment year 2007-08, the appellate proceedings before the learned CIT(A) arising from the assessment order dat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is should be treated as short term capital gains taxable @10%. 3. The brief facts of the case are that the assessee is a partner in partnership firms from which the assessee derived income by way of share of profit, remuneration and interest income. The assessee has also declared capital gains on sale of shares and interest income etc. 4. During the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Act, the A.O. observed that the assessee has entered into transactions i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tiny assessment u/s 143(3) read with Section 143(2) of the Act, it was accepted as capital gain . While for the assessment year 2006-07 the same was treated as business income. The assessee submitted that he has filed appeal before the ld. CIT(A) and submitted that the order of the AO for earlier year suffered from several infirmities against which elaborate submissions were made before the learned CIT(A) and order of the learned CIT(A) is awaited. The A.O. observed that assessee has failed to s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sale of shares were treated as income of the assessee under the head profit and gain from business and profession and hence the gains offered on short term capital gains of ₹ 5,51,677/- was treated as income of the assessee from business vide assessment order dated 16th December, 2009 passed by the AO u/s 143(3) of the Act. 5. Aggrieved by the assessment order dated 16.12.2009 passed by the A.O. u/s 143(3) of the Act, the assessee filed his first appeal before the ld. CIT(A). 6. Before the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

786/- also. The assessee submitted that surplus funds are invested in shares and mutual funds. The assessee submitted that majority of the time is devoted in the business and this is not the main activity being a working partner with M/s King Metal Works. The investment in shares was made mainly through the brokers or IPO and mainly in Mutual Funds. It was submitted that in the books of account these transaction were reflected as investment in shares and not as stock-in-trade. No funds were borr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ome. All the share dealings were done through recognized stock exchanges and were delivery based . The said investments are duly recorded in the books of accounts as Investment . It was also submitted that in assessment years 2004-05 and 2005-06 the income was treated as investment income and charged to tax as capital gain in the scrutiny assessment framed by the Revenue, while in the assessment year 2006-07 the same was assessed as business income. Thus, the assessee prayed before the learned C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ge and the objective is to earn profit and not to hold the shares for earning dividend or capital appreciation. The ld. CIT(A) observed that the volume of purchase and sale of the assessee during the previous year was substantially high and purchase and sale of shares was the main activity of the assessee. The transactions were continuous and regular and systematic. The ld. CIT(A) relied upon various decisions which are detailed in his order and came to the conclusion that the assessee is engage .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e is to gain profits and hence the decision of the A.O. was upheld by the learned CIT(A) vide appellate order dated 29.11.2012. 7. Aggrieved by the appellate order dated 29.11.2012 passed by the ld. CIT(A), the assessee filed appeal before the Tribunal. 8. The ld. Counsel for the assessee submitted that the assessee had made investments in shares which were purchased through recognized stock exchanges through brokers or IPO. The payments were made through cheque. The investments in shares are sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ile for assessment year 2006-07 the AO brought the same to tax as income from business. In assessment years 2006-07 the ld. CIT(A) has accepted the purchase and sale of shares as short term capital gain vide order dated 19th August, 2009 which is placed in paper book page 16 to 24. The ld. Counsel submitted that there is no change in the factual matrix of the case in the instant previous year as compared to the earlier years. Principle of consistency has to be maintained and the short term capit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e the similar figure for assessment year 2006-07 being 129 days and 107 transaction. The assessee also submitted a chart vide paper book page 26 to 29 showing the statement of short term capital gains /loss on share transaction for the instant assessment year 2007-08 . The ld. Counsel relied upon the decision of Hon ble Bombay High Court in the case of CIT v. Gopal Purohit (2011) 336 ITR 287(Bom.). 9. The ld. D.R., on the other hand, relied upon the order of the authorities below and submitted t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

We have observed that the assessee is a working partner in partnership firms from where he is deriving income from share from partnership firm(exempt), interest on capital and remuneration . We have observed that the assessee has purchased and sold the shares through recognized stock exchanges through brokers or IPO and the payments were made through cheque. The shares /Mutual Funds have been shown as investment in the books of account and valued at cost. There were no borrowings by the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

Forum: Duty Drawback & Input Credit - under GST

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Forum: Input tax credit

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version