2019 (4) TMI 1122

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....nt. ORDER P.C. : 1. The Revenue is in Appeal against the judgment of Income Tax Appellate Tribunal. Following question was presented for consideration; "Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal ITAT erred in holding the gain of Rs. 13,047,76,692/­ on account of sale of shares as Long Term Capital Gain?" 2. The Respondent­-....

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.... IPO for sums aggregating Rs. 1,20,00,000/­ in the month of May & November, 2006. This stock had a lock­in­period of 12 months from the year of launch of the said company in Bombay Stock Exchange. These shares have been sold during the month of March, 2008 for a consideration of Rs. 14,16,86,117/­, thereby earning a gain of Rs. 12.97 crores. The AO at page 11 of the order had noted....

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....investment as there is less risk of loss and also it fortifies the intention that it is for the purpose of treating it as an investment and not as a stock­in­trade. Here in this case as pointed out by ld. Counsel the average period of holding of most of these shares is 628 days which is fairly a long period. In certain scripts assessee had also incurred loss. On these facts and circumstanc....

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....rcumstances, we hold that the shares which have been held as "investment" in the Balance sheet are to be treated as assessable under the head "capital gain" and not as 'business income'. Accordingly, ground no.1 & 2 are treated as allowed." 3. Perusal of the documents on record would show that the Tribunal took into account relevant factors to come to the conclusion that the sale procee....