TMI Blog2018 (12) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ture, would depend on facts and circumstances of each case. There are judicially laid down guidelines and parameters to judge whether in a case, the sale of shares would give rise to business income or capital gain. Nevertheless, essentially such question is a mixed question of law and facts. Tribunal has applied the correct parameters to the admitted the facts, emerging from the record. We do not find any error in such consideration. No question, therefore, arises for our consideration. Disallowance of Foreign Travel expenses - revenue expenditure OR capital expenditure - Held that:- Tribunal came to the conclusion that the Foreign Travel expenditure was incurred to increase the Assessee's customer base in different countries and also t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the sale of shares of one Adani Enterprises by the Assessee, would give rise to business income or short term capital gain. The Assessing Officer gave detailed reasons to come to the conclusion that said sale of shares was in the nature of Assessee's business venture. The Commissioner of Income Tax (Appeals) confirmed the view of the Assessing Officer, upon which, the issue reached the Tribunal at the hands of the Assessee. The Tribunal by the impugned Judgment allowed the Assessee's appeal, making following observations: We heard the parties and perused the record. The first issue relates to the assessment of Capital Gains as Business income. In the year relevant to the assessment year 200708, the assessee initially declare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has claimed the gains arising on sale of Adani Enterprises Limited only as Short Term Capital Gain with the claim that it has held the same as its investment. It is now well settled proposition that a person is entitled to maintain two separate portfolios, one for its investment and another one for its trading assets. For this proposition, one may gainfully refer to the Circular No.4/2007 dated 15-06-2007 issued by the CBDT and also the decision rendered by Hon'ble High Court in the case of Gopal Purohit (2010) (228 CTR 582). In the instant case, the assessing officer has not disproved the claim of the assessee that it has maintained two different portfolios as discussed above. Even though the Ld. CIT(A) has observed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e no instances of repetitive purchase and sale of shares. From the balance sheet, it could be gathered that the Assessee had used its own funds or interest free funds, borrowed from the Directors of the Company in order to purchase the shares. The Assessee had taken physical delivery of the shares and in the books of account, treated the same as an investment. 4. Inter alia, on said grounds, Tribunal had ruled in favour of the Assessee. Whether the purchase and sale of shares is in the nature of investment or business venture, would depend on facts and circumstances of each case. There are judicially laid down guidelines and parameters to judge whether in a case, the sale of shares would give rise to business income or capital gain. Neve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us other places. Mere expansion of existing business activities, under no circumstance, would fall under the category of New business venture . It is not the case of the AO that the assessee has incurred the foreign travel expenses in connection with any activity, which is altogether new one and unconnected with the existing business activities. From the explanation furnished by the assessee, we notice that the traveling expenses have been incurred to increase the customer base in different countries and also to identify new avenues in the existing business of providing financial consultancy services. It is a settled proposition that the expenditure incurred for expansion of the existing business activities is revenue in nature. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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