TaxTMI 
TaxTMI 
TaxTMI 
2011 (8) TMI 1233
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.... Mumbai. 2. Grounds raised by the Revenue, read as follows:- "1. The order of the learned CIT(A) is opposed to law and facts of the case. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in treating receipt of ` 26,99,76,000 received on transfer of land as non-taxable without appreciating the fact that the assessee is not the "residuary legatee" of late Shri E.F. Dinshaw and the control, management and ownership of the properties consisting of the estate of Shri E.F. Dinshaw vests totally with the assessee. 3. On the facts and in the circumstances of the case and in law, the learned CIT(A) ought to have treated the receipts either as short term capital gain or adventure in the nature of trad....
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....rdingly to the extent the source of the receipts were advances, the same ought to be excluded in computing the quantum by the appellant in terms of the indenture." 4. Before us, Mr. S.E. Dastur, learned Sr. Advocate, appeared on behalf of the assessee. Mr. Subachan Ram, Departmental Representative, appeared on behalf of the Revenue. 5. Both the parties submit before the Bench that grounds no.2 and 3 of Revenue's appeal stand covered by the decision of this Bench of the Tribunal in ITA no.4573 and 4424/Mum./2008, order dated 15th July 2011, in assessee's own case. On a query from the Bench, both the parties submitted that the facts, the order of the Assessing Officer, the order of the Commissioner (Appeals) as well as the arguments of bot....
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....tal gain on shares u/s 111A 36,72,682 3. Short term capital gain in shares through PMS u/s 111A 58,91,164 4. Short term capital gain in units in mutual funds u/s 111A 115,63,269 5. Short term capital gain on shares & mutual funds u/s other than sec. 11A 59,77,686 Less: B/F short term capital loss set-off 45,17,236 Balance 14,60,450 6. Short term capital gain in debentures 1,500 The appellant is an industrialist of repute and is the Chairman of The Bombay Dyeing & Mfg. Co. Ltd. besides being the Chairman of Britannia Industries Ltd. and also holds directorships in various group companies and other reputed companies. His time is devoted to look after the various business interests in these companies and attending t....
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.... as business income assessable under the head "Income From Business". He referred to Page-23 of the assessment order and points out that the assessee had purchased 17 shares and sold 11 shares on his own i.e., without reference to portfolio managers. He further submits that through DSP Merril Lynch Fund managed PMS, shares were sold 47 times and that in Kotal PMS shares were sold 17 times. He submits that frequency of the transactions, quantum of investment, point out to the fact that the assessee has indulged in trade and the profit should be assessed under the head "Income from Business". He relied on number of case laws. 9. Learned Sr. Counsel, on the other hand, relied on the findings of the Commissioner (Appeals) and points out that t....
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....circumstances of the case and on perusal of the papers on record, as well as the case laws cited before us, we find that this is a factual matter and reference to numerous case laws by both the parties is not required. This is a case where the assessee has invested large amount of money both in shares, as well as in mutual funds. The investments were made mostly through portfolio managers. The first appellate authority's finding of fact is that, the assessee has transacted sales on his own, only on eight occasions during the year. In contrast, the assessee had invested in 55 companies during the year. These figures, by no stretch of imagination, would lead us to a conclusion that the assessee is not the investor but a trader in shares. Ther....
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....sidered as that of nursing of the investment. 26. Before we conclude significant fact does need some deliberation and that is about the method of valuation of stock of shares reflected in the balance sheet. The admitted position is that the assessee has not adopted the method of valuation as being generally adopted by a business concern. A business asset is valued at the cost or market price whichever is less but in the applicant case it was not so. The appellant had not adopted this prevalent method. Rather the assessee had opted to value the shares holding at cost price only. Since it was not, then the law subscribed to treat such an asset as an investment, generally being valued by an investor. 27. To conclude, the circumstances an....