TaxTMI 
TaxTMI 
2004 (2) TMI 312
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....clared long-term capital gain from the shares at Rs. 2,00,484. The AO considered the profit from the shares as income from business and worked out the amount of profit at Rs. 4,39,293. According to the AO the assessee earned the aforesaid profit as per following details: Sl. No. Name of com. Qty. Cost Price Selling Price Qty. Profit/loss Equity Shares 1. Didwana Indl. Corp. Ltd. 1,000 10,510 13,000 1,000 2,490 2. General Invest. Co. Ltd. 400 0 42,800 400 42,800 3. -do- 40 4,053 4,280 40 227 4. -do- 30 3,343 3,210 30 - 133 5. Oriental Co. Ltd. 300 0 33,300 300 33,300 6. -do- 130 13,285 14,430 130 1,145 7. -do- 25 2,889 2,775 25 - 114 8. Swadeshi Comml. Co. Ltd. 200 13,794 16,600 ....
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....t the assessee had not invested in shares by making borrowing and had shown the investment in shares under the head "investment" in the balance sheet. It was further stated that the main source of the assessee was salary income from various concerns and considerable income from other sources. Therefore, AO was not justified in holding that the assessee had done business in purchase and sale of shares. As such, the assessee was liable to be taxed only on account of capital gain and not on account of business income. The reliance was placed on the judgment of Hon'ble Supreme Court in the case of Karamchand Thapar & Bros. (P) Ltd. vs. CIT (1971) 82 ITR 899 (SC) and the judgment of Hon'ble Calcutta High Court in the case of CIT vs. Karamchand T....
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.... assessee on sale of shares. 5. Being aggrieved, the Department is in appeal. The learned Departmental Representative reiterated the observations made by the AO and vehemently argued that the assessee was engaged in the business of the sale and purchase of the shares and there were many transactions which were done by the assessee for the year under consideration. Therefore, the AO was justified in treating the income from the sale of the shares as business income instead of capital gain shown by the assessee. He prayed to set aside the order of the CIT(A) and to restore the order of the AO. In his rival submissions the learned counsel for the assessee reiterated the submissions made before the CIT(A) and further submitted that the main so....
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....er stated that the AO only mentioned the rate of the shares and the sale value in the assessment order but not the date of purchase. He referred to the page No. 17 of the paper book which reads as under: Name of the Dt. of Cost Qty. Cost Sold during the year company acquisition per unit (Rs.) Qty. Rate Amount Profit/loss in books Long-term Capital gains/Loss Equity Shares Didwana Industrial Corpn. Ltd. 28/10/72 10.51 1,000 10,510.00 1,000 13.00 13,000 2,490.00 General Investment Co. Ltd. 13/3/66 0.00 400 0.00 400 107.00 42,800 42,800.00 -do- 8/11/72 101.33 40 4,053.00 40 107.00 4,280 227.00 -do- 19/10/77 11.45 30 3,343.50 30 107.00 3,210 (133.50) Oriental Co. Ltd. 29/3/75 0.00 300 0.00....