TaxTMI 
TaxTMI 
2016 (1) TMI 400
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....re involved in both these appeals, these were heard together and are being disposed of by this consolidated order for the sake of convenience. 2. First, we take up the Revenue's appeal in ITA No.2694/Ahd/2010 for AY 2006-07 (in the case of Sh.Ashokkumar Babulal Almal). The Revenue has raised the following grounds of appeal:- 1. The Ld.CIT(A) erred both on facts and in law in directing the A.O. to assess the income of Rs. 23,68,262/- by treating the same as income from STCG on which STT is paid. 2. The Ld.CIT(A) failed to appreciate the fact that the A.O. had established that the assessee was engaged in purchase and sale of shares and, hence the trading activity was business activity. On the facts and in the circumstances of the c....
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....he ld.CIT(A) was not justified in treating the surplus arising out of sale and purchase of shares as STCG as it is evident from the record that the assessee is trading into shares. He further submitted that the AO has treated and assessed as business profit, under the head "income from business" relying upon the CBDT Circular dated 15/06/2007. 3.1. On the contrary, the ld.counsel for the assessee reiterated the submissions as were made before the ld.CIT(A). He submitted that the assessee has been trading into shares as investment. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has given a finding on fact as under:- "4.3 I h....
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.... Madras High Court have also held the income from sale of investments as income from capital gains and not as business income. Recently in the case of CIT v/s Gopal Purohit, Income-tax Appeal No. 1121 of 2009 (Mumbai High Court), wherein even sale and purchase of lacs of shares amounting in crores of rupees was held to be income from capital gains on the basis of method of keeping books of account. In case of Dineshkumar Kunjbihari Almal, Ahokkumar Babulal Almal & in case of assessee himself during AY. 2005-06, similar transactions were held to be as Investment and not as business. In view of the above referred facts, I direct the AO to assess the income of Rs. 23,68,262/- by treating the same as income from short term capital gain on wh....
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....ness activity. On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the Assessing Officer since the assessee has failed to disclose his true income. The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the A.O. be restored. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary. 7. All the grounds are inter-connected. The effective issue in this Revenue's appeal is against the finding of the ld.CIT(A) giving direction to the AO for treating the surplus of sale and purchase of shares on which STT has been paid as Short Term Capital Gain (STCG). Identical grounds were raised by the Revenue in the case....