2019 (1) TMI 524

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....ra, CIT- DR ORDER PER N.K. BILLAIYA, AM:- This appeal by the Revenue is preferred against the order of the Commissioner of Income Tax [Appeals] - XXXIII, New Delhi dated 17.01.2013 pertaining to assessment year 2006-07. 2. The solitary grievance of the assessee is that the CIT(A) erred in directing the Assessing Officer to treat the gain of Rs. 2,95,41,232/- to tax under the head 'capital gain....

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....e reply of the assessee, which is exhibited at page 3 of the assessment order, the Assessing Officer noted that the reply was not acceptable. The Assessing Officer was convinced that dealing in shares was the main activity of the assessee and, accordingly, treated the short term capital gain as business income of the assessee. 5. Aggrieved, the assessee carried the matter before the CIT(A) and re....

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....finding that for A.Y. 07-08. The appellant has turnover of share transaction of Rs. 80 crores does not change the character of transaction for A.Y. 06-07. As per the circular of CBDT relied by Ld AR Supra, even during the same year the assessee can have trading as well as investment transaction of shares. Second finding of Assessing Officer that the appellant has used borrowed fund, therefore th....

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....ord show that during the year, the assessee made investments in shares thought public offer of issue of the following : 1. IDFC 2. SUZLON 3. ICICI 4. GSPL 5. IMOX 10. This shows that the assessee never purchased shares from open market. When the shares were allotted, the assessee waited for the right opportunity and sold the shares thereby making profits which were returned as short ter....