TaxTMI 
TaxTMI 
2019 (8) TMI 237
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.... confining the same on the facts and circumstances of the case and the law applicable The addition as made / sustained by the authorities below being totally on erroneous premise is to be deleted and the loss as returned by the appellant is to be accepted. 2.2 In any case and without prejudice, the authorities below have erred in not appreciating the fact that the appellant is a wholly owned subsidiary of venture capital fund and formed to make investments in Healthcare provider companies. On proper appreciation of facts and the law applicable, the conclusion drawn by the authorities below that investments made in health care provider companies is in the nature of business is wholly erroneous both on facts and law applicable is to be rejected. 2.3.The Authorities below have erred in not considering that: a) the shares held were capital assets and not of business asset. b) the appellant has shown these shares as investments and not as stock in trade. c) most of the shares were held for a significant period of time. d) there are no borrowed funds. e)most of the shares were held for a significant period of time there are n....
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....in passing the order in the manner passed by him and the learned CIT(A) has erred in confirming the same. The orders passed to the extent confirmed are bad in law and are liable to be quashed. 2.1 In any case, the learned assessing officer had erred in treating the transfer of shares as business activity and the learned CIT(A) has erred in confirming the same by relying upon the earlier year's appellate orders. On the facts and circumstances of the case and the law applicable, the conclusion drawn by the authorities below being totally on erroneous premise is to be deleted. 2.2 The Authorities below have also erred in not considering that: a) the shares held were capital assets and not of business asset. b) the appellant has shown these shares as investments and not as stock in trade. c) The shares were held for capital appreciation. d) there are no borrowed funds On proper appreciation of facts and circumstances of the case and the law applicable it would be clear that the sale of such shares should be treated as transfer of capital assets only. 2.3 The learned assessing officer had erred in holding that: ....
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....uthorities below have erred in appreciating the fact that the appellant is a wholly owned subsidiary of venture capital fund and formed to make investments in Healthcare provider companies. On proper appreciation of facts and the law applicable, the conclusion drawn by the authorities below that investments made in health care provider companies is in the nature of business is wholly erroneous both on facts and law applicable is to be rejected. 2.3.The Authorities below have erred in not considering that: a)the shares held were capital assets and not of business asset. b)the appellant has shown these shares as investments and not as stock in trade. c)most of the shares were held for a significant period of time. On proper appreciation of facts and circumstances of the case and the law applicable it would be clear that the gain on sale of shares are to be taxed as capital gains only. On proper appreciation of facts and circumstances of the case and the law applicable, it would be clear that the gains on sale of shares and units of mutual fund are to be taxed as capital gains only. 2.4. The learned authorities below have ....
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....en submitted, that during financial year 2007-08 India Advantage Fund-V proposed investment in 5 healthcare provider companies, either directly from the fund, or through special purpose vehicle created to fund investment in healthcare providing companies. It is submitted that, with sole intention, assessee was formed in July 2007. Referring to memorandum of Association, Ld.AR submitted that main objects of assessee are as under; • To carry on business of providing medical relief to public in all branches of medical schemes by all available means; • to purchase, lease or otherwise acquire, established, maintain, operate, run and or administer hospitals, medicare, health care, diagnostic, health aides and research, centres; • to carry out medical and clinical research by engaging in the research and development of all medical sciences and therapies; • to undertake, promote or engage in all kinds of research including clinical research and development work required to promote, assessed or engaged in setting up hospitals, health care centres and facilities for manufacturing medical equipment etc; to provide, encourage, any shade or pr....
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....investment made in healthcare provider companies are requirement of assessee's business. Ld.AO thus held that Shares were held with motive of earning profit, and not to earn dividend income. It has been submitted by Ld.AR that similar addition has been made for all years under consideration. 4.Aggrieved by addition made by Ld.AO, assessee preferred appeal before Ld. CIT (A), who upheld view of the Ld.AO. 5.Aggrieved by order passed by Ld.CIT (A), assessee is in appeal before us. 6. Ld.AR submitted that, assessee is not trading in shares and securities and shares in these companies were held as investment in the balance sheet. It has been vehemently argued that investment was main objective of assessee as special purpose vehicle created by parent company. It has been submitted that there is no other activity other than making investments in healthcare companies suggested by, the parent company, India Advantage Fund-V. It has been submitted that assessee do not have any other investments carried out in any other companies other than healthcare companies, and that assessee did not have any intention to trade in shares. It is thus submitted that the activity carried on b....