2011 (12) TMI 374

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....mounting to Rs.5,13,171 by virtue of s. 50C of the IT Act.   4. The facts of the case are that assessee sold a plot for Rs.4.25 lacs and capital gain of Rs.3,76,338 was shown. The plot was sold through an agreement only. The Sub-Registrar was requested to convey the DLC rate of the plot on the date of sale. The Sub-Registrar vide his letter dt. 31st Aug., 2006 informed that the DLC rate of the residential plot was Rs.225 per sq. ft. Accordingly the value was computed at Rs.5,60,250 as against declared value of Rs.4.25 lacs only resulting in difference of Rs.1,35,250. The assessee was required to show cause why the sale value at Rs.5,60,250 should not be adopted. As per consent of assessee telephonically given to adopt the value at R....

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....ain on the basis of value as per sale agreement.   6. Ground No. 2 is against treating the gain and loss on purchase and sale of shares as business income against capital gain shown by assessee.   7. During the assessment proceedings, the AO noticed that assessee declared short-term capital gain on share at Rs.2,85,959 and long-term capital loss of Rs.82,621 with indexation and long-term profit of Rs.13,856 without indexation from shares. The AO found that assessee is a LIC agent and engaged in heavy purchase and sale of shares. The AO noted that assessee has shown total 263 transactions during the relevant assessment year, out of which 209 transactions were shown as short-term and the remaining 54 as long-term. In other wor....

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....y be, and if the share transactions are shown in trading portfolio, then of course the transaction has to be treated as in the nature of business and adventure. In some cases it has also been held that if the transactions of purchase and sale of shares are made on the same day or within 30 days, then of course, these transactions have to be treated as business transactions. Since all these facts have not been examined, therefore, we are of the view that matter should go back to the file of AO to examine this aspect. If it is found that sale of shares has been made within 30 days, then of course AO may treat this transaction as business transaction.   8.1 Regarding the loan, we would like to mention that this is a small loan taken fr....