TaxTMI 
TaxTMI 
2018 (5) TMI 704
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....e Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 28.03.2013. 2. The Grievances raised by the Revenue in this appeal are as follows: 1. On the facts and circumstances of the case and in law, Ld. CIT(A) has erred in allowing business income of Rs. 1,12,64,140/- as Short Term Capital Gain even though the assessee company is engaged in business of trading of shares. 2. On the facts and circumstances of the case and in law, Ld. CIT(A) has erred in not giving any reasons to treat the Business income as Short Term Capital gain as each year is independent Assessment Year. 3. That the appellant craves leave to add, alter, amend or modify the grounds of appeal during the course of hearing proceedings o....
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....t and facts, the Assessing Officer treated the income of Rs. 1,12,64,140/- as 'income from business' instead of as income under the head 'short-term capital gain'. 4. Aggrieved by the stand of the Assessing Officer, the assessee carried the matter in appeal before the ld CIT(A), with success, who has directed the assessing officer to treat the income of the assessee under the head 'shortterm capital gain'. Aggrieved with the order of the ld. CIT(A), the Revenue is in appeal before us. The ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and is not being repeated for the sake of brevity. On the other hand, the ld. counsel for the assessee has defended ....
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....ain. We find right from A.Y.2009-10, to till A.Y.2016-17, the assessee had been showing short term capital gain (STCG) and the Department has been accepting under the head 'short term capital gain'. That is, in respect of shares which were held as investment, gain on transfer of those shares was declared under the head 'short term capital gain, and the same was accepted by the Department. We note that in case of some assessment years the assessment was made u/s 143(1) of the Act but the assessee`s claim was accepted by the Department, as 'short term capital gain'. We note that for the assessment years, namely, A.Y.2012-13, 2014-15 and 2015-16 assessment was completed u/s 143(3) of the Act and the Department accepted the claim of the assesse....
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....herein it has been provided as follows: "2.....However, this stand, once taken by the assessee in a particular assessment year shall remain applicable in subsequent assessment years also and the taxpayer shall not be allowed to adopt a different/contrary stand in subsequent assessment years...." This Circular is in respect of how to treat the income from shares, as business income or capital gains. Therefore, we note that the intention of the assessee is to treat the trading in shares as an investment in the books of accounts. The assessee has not shown the shares as a part of the closing stock in the balance sheet, the assessee has shown shares under the head investment, therefore, the intention of the assessee is not to trade ....