2012 (5) TMI 811 - AT - Income Tax

Appellate Tribunal affirms LTCG treatment for share sale, dismissing revenue's appeals.

The Appellate Tribunal upheld the CIT(A)'s decision in two appeals, dismissing the revenue's appeals. The tribunal confirmed the treatment of the sale of ... - Issues involved: The judgment involves the issue of treating the sale of shares for Long Term Capital Gains (LTCG) instead of as 'Income from other Sources' u/s 143(3) of the Income Tax Act, 1961.Issue 1 - LTCG vs. Income from Other Sources:The appeals were filed against the order of CIT(A) treating the sale of shares for LTCG instead of as 'Income from other Sources.' The AO observed that the assessee did not prove the identity, creditworthiness, and genuineness of the transaction. The trading of shares was suspended by CSE and SEBI due to malpractices. The CIT(A) deleted the disallowance, stating that the capital gain on the sale of shares was genuine and supported by documentary evidence. The revenue appealed, but the tribunal upheld the CIT(A)'s decision. The tribunal noted that necessary details and documentary evidence were provided by the assessee, and the payments were made through banking channels, supporting the claim of LTCG. The tribunal dismissed the appeal of the revenue.Issue 2 - Similar Grounds in Another Appeal:In a separate appeal with similar grounds, the revenue raised the same issue as in the first appeal. The tribunal found the facts to be similar and upheld the order of the CIT(A), dismissing the appeal of the revenue.In conclusion, the Appellate Tribunal upheld the CIT(A)'s decision in both appeals, dismissing the revenue's appeals and confirming the treatment of the sale of shares as Long Term Capital Gains.