TMI Blog2017 (12) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... art of investment in the preceding assessment year. It was also brought to our notice that in the preceding assessment years 2005-06 to assessment year 2007-08 in the assessment made u/s. 143(3) the amount of gain arose from sale and purchase of shares was assessed under the head capital gain by the assessing officer. Similarly, it was also contended that in the subsequent years i.e. assessment year 2012- 13 to 2014-15 gain arising on sale and purchase of shares was shown under the head income from capital gain and were accepted by the assessing officer in the assessment made u/s. 143(3) of the act. After considering the above facts and legal findings, we are of the view that the ld. CIT(A) was not justified in upholding the addition made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of purchase and sale of land and trading of shares and securities. During the course of assessment proceedings, the assessing officer noticed that assessee s business income consists of ₹ 1,06,327/- as income from speculation and ₹ 6,16,1291/- as income from Frangipani art and further the assessee has earned income of ₹ 84,81,597/- from the sale and purchase of shares. The assessing officer observed that assessee had shown the same under the short term capital gain and set off the brought forward loss of ₹ 71,35,047/-. The assessing officer further observed that the income arose from share transactions should have been considered under the business held instead of capital gain. There were 2287 transactions undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be treated as business transactions. In these cited orders, Hon'ble Tribunal have followed their decision in ITA No 4517/Ahd/2007 wherein it was held that transactions under the PMS Scheme are to be treated as business transactions. Further, Hon'ble ITAT Delhi in the case of M/s. Radial International ITA No 1368/Delhi/2010 for A Y_2006-07 have held that PMS transactions are to be treated as business income. Similarly, Hon;ble ITAT, Hyderabad in the case of Anilkumar Jain ITA No 163 164/Hyd/2011 for A Y 2007-08 Hon'ble ITAT, Indore in the case of Shri Anurag Vijay Vargaya ITA No 122/lnd/2010 for AY 2006-07 have concluded that PMS transactions are business transactions of the appellant and. income thereupon is a business i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing officer has assessed the short term capital gain shown by the assessee as business income and held that assessee was not entitled for set off of brought forward loss on the ground that the transaction of purchase and sale of shares and securities were carried out through the portfolio management services (PMS). We observed from the balance sheet of the assessee that during the year under consideration the assessee has shown the purchase and sale of shares and securities as investment under the head HDFC Asset Management. We have further verified from the paper book that in the preceding year also the same was shown as investment in the balance sheet of the assessee. We find that assessee has been consistently showing the shares as inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as business income. We have also observed that the assessee has right from the beginning treated the amount held in shares as part of investment in the preceding assessment year. It was also brought to our notice that in the preceding assessment years 2005-06 to assessment year 2007-08 in the assessment made u/s. 143(3) the amount of gain arose from sale and purchase of shares was assessed under the head capital gain by the assessing officer. Similarly, it was also contended that in the subsequent years i.e. assessment year 2012- 13 to 2014-15 gain arising on sale and purchase of shares was shown under the head income from capital gain and were accepted by the assessing officer in the assessment made u/s. 143(3) of the act. After consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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