TMI Blog2020 (11) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... rt will not alter the intention of the assessee for holding the equity shares purchased by it as investment which is evident from the statement of accounts/Balance Sheet of the assessee. Thus direct the Ld. AO to treat the income earned by the assessee during the relevant assessment year as Short Term Capital Gain or Long Term Capital Gain as the case may be. - Decided in favour of assessee. - ITA No.400/Hyd/2016 - - - Dated:- 8-7-2020 - Shri A. Mohan Alankamony, Accountant Member For the Assessee : Sri P. Murali Mohana Rao For the Revenue : Sri Solgy Jose T. Kottaram, DR ORDER PER A. MOHAN ALANKAMONY, AM.: This appeal is filed by the assessee against the order of the Ld. CIT (A)-8, Hyderabad in appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the addition made for ₹ 615/- as it was an ad-hoc disallowance made by the AO on an improper basis. However, the Ld.CIT (A) upheld the view of the Ld. AO that the income earned by the assessee towards sale of shares has to be taxed under the head Income from business because the nature of activity of the assessee was trading in shares. The Ld. CIT (A) arrived at such a conclusion based on the audit report of the Chartered Accountant filed in Form-3CA and 3CB as per Rule 6G of the IT Rules, 1963. 5. The Ld. AR argued before us by stating that the assessee had treated the shares purchased as its investment and not stock-in-trade . The Ld. AR further submitted that in the audited financial statement the entire equity shares pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee though have classified the purchase of equity shares as investment in its Balance Sheet, the same is disclosed in the P L Account as trading activity. Considering the facts and circumstances of the case, I hereby direct the Ld. AO to treat the income earned by the assessee during the relevant assessment year as Short Term Capital Gain or Long Term Capital Gain as the case may be. It is ordered accordingly. 7. Before parting, it is worthwhile to mention that this order is pronounced after 90 days of hearing the appeal, which is though against the usual norms, I find it appropriate, taking into consideration of the extra-ordinary situation in the light of the lock-down due to Covid-19 pandemic. While doing so, I have rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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