TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 300
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....rred in affirming the order of the AO disregarding the conversion of the trading shares into investment shares and treating the long term capital gain of Rs. 22,27,819/- arising from the sale of those shares as profit of trading in shares and bringing the same to tax?" The assessee is a company which is engaged in the business of leasing, finance and investment. On 1st April, 2004, i.e. during the previous assessment year 2005-06 the following shares were transferred by the assessee from its trading stock into investments:- 1. Hind Lever Chem Limited 10,370 shares; 2. Chambal Fertilisers Chem Limited 38,000 shares; 3. Eveready Industries Limited 14,580 shares; and 4. Shrachi Securities Limited 48,000 shares. Out of the above shar....
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....ssee's own case, the Tribunal has not accepted such conversion in the immediately preceding year, i.e. A.Y. 2005-06 and it, therefore, follows that the shares sold by the assessee during the year under consideration continued to constitute its stock-in-trade and not investment. Consequently the profit arising from the sale of the said shares, in our opinion, is chargeable to tax in the hands of the assessee as its business income as rightly held by the Assessing Officer and not longterm capital gain as held by the ld. CIT(Appeals). We, therefore, set aside the impugned order of the Ld. CIT(Appeals) on this issue and restore that of the Assessing Officer. The appeal of the Revenue is accordingly allowed." So it was that the appeal was admi....
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....han the value at which it was transferred from the business stock, the question of capital loss or capital gain would arise. He also relied on the case of CIT vs. Dhanuka & Sons reported in (1980) 124 ITR 24 (Cal) by which a Division Bench of this Court on considering Kikabhai Premchand (supra) and several other judgments had expressed:- "14. Further, in our view, there cannot be any actual profit or loss in such transfers where no third party is involved and the items are kept in a different account of the assessee himself. The question of gain or loss would arise in the facts of the instant case only in future when the stocks transferred to the investment account might be dealt with by the assessee. If such shares be disposed of at a va....
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....vocate appeared on behalf of the Revenue and submitted that neither the above questions were substantial questions of law nor were they involved in this case because when in the previous assessment year the claim of conversion by the assessee was turned down by the Tribunal, the assessee's delayed appeal was dismissed by a Division Bench of this Court on 5th May, 2015 on the reason of choice made by the assessee. "The petitioner made a conscious choice of not preferring an appeal and accepting the order, which is now sought to be challenged. When the petitioner chose not to prefer an appeal at the appropriate time, he cannot be allowed to file an appeal after expiry of more than 1500 days simply because he is now advised otherwise. It is ....
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....asis of a view taken by a learned Single Judge of this Court in the case of Maniruddin Bepari vs. The Chairman of the Municipal Commissioners, DACCA decided on 16th April, 1935 and reported in 40 Calcutta Weekly Notes (CWN) 17 being as follows:- "It is a fundamental principle of law that a natural person has the capacity to do all lawful things unless his capacity has been curtailed by some rule of law. It is equally a fundamental principle that in the case of a statutory corporation it is just the other way. The corporation has no power to do anything unless those powers are conferred on it by the statute which creates it." This view finds support from Kikabhai Premchand (supra) where the situation at hand was contemplated as would app....
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....nsidered and decided does the decision for that particular year operate as res judicata in respect of the liability for a subsequent year? In a sense, the liability to pay tax from year to year is a separate and distinct liability; it is based on a different cause of action from year to year, and if any points of fact or law are considered in determining the liability for a given year, they can generally be deemed to have been considered and decided in a collateral and incidental way. The trend of the recent English decisions on the whole appears to be, in the words of Lord Radcliffe, "that it is more in the public interest that tax and rate assessments should not be artificially encumbered with estoppels (I am not speaking, of course, of t....