2004 (11) TMI 509

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....nd proceed to dispose of the appeal on merits. 3. The only issue pertains to the head under which the loss on sales of shares is assessable to tax. Facts of the case revolve in a narrow compass. The assessee-company is engaged in the business of finance and investment in shares etc. apart from holding the shares as stock-in-trade. Shares which were purchased with an intention to hold them as investments and the shares which were held as stock-in-trade, were mentioned as such in the balance-sheet. Investment in shares is one of the permissible activities under the objects clause of the company. During the previous year relevant to the assessment year under consideration the assessee sold certain shares, which were originally held as 'inve....

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.... The assessment of profit/loss on purchase and sale of shares under the head income from business/profession has been considered in the assessment proceedings for the assessment year 1997-98 and also for the assessment years 1992-93 to 1996-97. The income/loss of the assessee from the purchase and sale of shares is assessed as under". Aggrieved, the assessee contended before the first appellate authority that the Assessing Officer ought to have accepted the classification of shares. The learned CIT(A) however rejected the contention of the assessee. He observed that a similar activity was undertaken in the earlier years and, on a detailed consideration, the Assessing Officer as well as the CIT(A) held that the transaction of purchase and....

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.... which the income therefrom is assessable. On the other hand, learned DR relied upon the orders of the Tax Authorities. It may be noticed that the Assessing Officer as well as CIT(A) mentioned that detailed orders were passed by the Assessing Officer as well as the first appellate authority while deciding an identical issue for assessment years 1992-93 to 1997-98 but the reasons given therein or the orders passed by the Tax Authorities in those cases were not placed before us by either party. We, therefore, confine to the facts as stated by the Assessing Officer as well as CIT(A) in this case. 6. We have carefully considered the rival submissions and perused the record. Admittedly, most of the shares were held for more than 10 years and ....