2014 (7) TMI 381

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....icer to treat the profit on sale of shares of Rs. 62,83,650/- as capital gains instead of business income treated by the Assessing Officer." 3. At the time of hearing before us, it is submitted by the learned DR that the Assessing Officer has discussed the issue at length from pages 2 to 8 and, after discussing all factual and legal aspects, has rightly arrived at the conclusion that the long term capital gain disclosed by the assessee at Rs. 62,83,650/- is to be assessed as income from business. He pointed out that the assessee has claimed short term capital loss on listed securities at Rs. 1,15,64,933/- and long term capital gain of shares at Rs. 1,78,48,583/- and, after adjusting the same, offered the income at Rs. 62,83,650/- under t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....period of the shares was about 325 days. That in the short term capital gain, there was a loss of Rs. 1,15,64,933/- and there was a profit under the long term capital gain amounting to Rs. 1,78,48,583/-. That the profit from sale of shares was in respect of only two shares which were purchased during the financial year 2004-05. That in the balance sheet of preceding two years, both the shares were disclosed as investment and were accepted as such though the assessment was completed under Section 143(3). He, therefore, submitted that there could not be an iota of evidence to consider the profit from long term capital gain as business income. He, therefore, submitted that the order of learned CIT(A) should be sustained. 5. We have carefull....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....saction of sale & purchase of shares were not speculative in nature & that there was actual delivery of shares. Taking into account the facts of the case and the law as discussed above, I am of the view that the Assessing Officer was not justified in treating the profit on sale of shares as business income instead of capital gains. The A.O. is directed to treat the profit on sale of shares as capital gains." 6. After considering the arguments of both the sides and the facts of the case, we do not find any infirmity in the above finding of learned CIT(A). The statement of long term capital gain reads as under:- 7. From the above, it is evident that long term capital gain arose only from sale of two shares which were purchased during th....