2014 (1) TMI 231

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....143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2006-07 vide his order dated 22.12.2008. Similarly, appeal being ITA No. 1704/K/2010 by revenue and Cross Objection No. 156/K/2010 by assessee are arising out of order of CIT(A)-XII, Kolkata in appeal No. 782/XII/Cir-10/09-10 dated 23.06.2010. Assessment was framed by DCIT, Circle- 10, Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2007-08 vide his order dated 14.12.2009. 2. The only common issue in these two appeals of revenue is against the order of CIT(A) in treating the profit from sale of shares as capital gains instead of business income assessed by AO. In both the years, the revenu....

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....ctions, large volume of transactions, planned, systematic and organized transactions, motive to earn profits etc to the appellant's case to treat the transactions in shares as business transactions. The A.O also relied on certain case laws to drive a point that the appellant's transactions in shares are in the nature of trading and not investments. On the other hand, the appellant mainly submitted that its intention was to hold shares as investments since beginning with a motive to earn dividend and appreciation in value. I have duly considered the submissions of the appellant. I have also considered the reasons stated and case laws relied on by the A.O in his assessment order. ln this regard reliance is placed primarily on jurisdictional ....

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.... the courts including Supreme Court in the above cited cases, and after explaining the facts of the case. I hold that the gains on account of transfer of shares shall be treated as capital gains as against business income assessed by the A.O. The appellant's ground is allowed." Aggrieved, revenue came in appeal before us. 4. Before us assessee filed a complete details of long term capital gains on sale of shares and short term capital gains on sale of shares for the relevant years i.e. date of acquisition, cost of acquisition, date of sale, quantity of share sold, sale consideration, number of days held before sale long term or short term capital gains as declared. From the chart we can see that holding period is from 1 year to 10 years a....

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....934 derived by the appellant on transfer of investments in shares as Capital Gains and not same to be a Business lncome." In such circumstances, as the factual position is very clear in the present case and hence, we are of the view that the assessee is holding the shares as an investment and the profit arising out of sale of shares is capital gains either long term or short term, as the case may be. Similar are the facts in AY 2007-08. Hence, taking a consistent view, we uphold the order of CIT(A) in both the years and the appeal of revenue are dismissed. 5. Coming to Cross Objections of assessee for AY 2006-07 i.e. C.O. No. 155/K/2010 and for AY 2007-08 i.e. CO No. 156/K/2010. The only issue in both the years is that the CIT(A) has wron....