Tribunal rules HUF shares separate from individual shares for deemed dividend income. Short term gains not pressed.

The Tribunal dismissed the revenue's appeal challenging the deletion of deemed dividend income u/s 2(22)(e) as it was established that HUF shares cannot be clubbed with individual shares for this purpose. Additionally, the Tribunal dismissed the assessee's challenge regarding the treatment of short term capital gains as business income since the cross objection on this issue was not pressed. Both the revenue's appeal and the assessee's cross objection were ultimately dismissed.

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Issues involved:
Revenue challenges deletion of deemed dividend income u/s 2(22)(e)
Assessee challenges treatment of short term capital gains as business income

Deemed dividend income u/s 2(22)(e):
The revenue challenged the deletion of deemed dividend income u/s 2(22)(e) by the Commissioner of Income Tax (Appeals). A survey u/s 133A revealed that the assessee held shares individually and as a beneficial owner through HUF. The Assessing Officer contended that the assessee, as a beneficial owner of more than 10% shares, fell u/s 2(22)(e). However, it was established that HUF shares cannot be clubbed with individual shares for this purpose. Legal precedents supported this distinction between individual and HUF shares. The Tribunal dismissed the revenue's appeal based on this interpretation.

Treatment of short term capital gains:
The assessee challenged the treatment of short term capital gains as business income. The Tribunal noted that the cross objection on this issue was not pressed by the assessee and thus dismissed it. Consequently, both the revenue's appeal and the assessee's cross objection were dismissed.

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