2020 (4) TMI 264

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....n of Rs. 93,08,807/- as business income and further upholding the disallowance of expenditure of Rs. 2,62,097/- on account of fees paid for increase in capital. 3. Facts of the case, in brief, are that the assessee is a company and engaged in the business of financial services as NBFC and investing in shares and mutual funds. It filed its return of income on 29.09.2011 declaring total income of Rs. 16,45,48,570/- under normal provision and book profit of Rs. 14,56,29,065/- u/s. 115 JB. The assessee revised its return of income on 27.09.2012 declaring total income of Rs. 14,08,02,104/-. The AO during the course of assessment proceedings noted that while computing the income the assessee has not disallowed the expenses incurred on increase i....

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....ions made by the AO. 6. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal. 7. So far as the disallowance of Rs. 2,62,097/- on account of fees paid for increase in share capital is concerned, the Ld. Counsel for the assessee did not make any argument. Therefore, the ground raised by the assessee on this issue is dismissed. 8. So far as the treatment of short term capital gain of Rs. 93,08,807/- as business income is concerned the Ld. Counsel for the assessee strongly challenged the order of the CIT(A). He submitted that both the lower authorities have erroneously recorded the facts and thereby made the disallowance. He submitted that out of 72 transactions on account of sale of shares 41 transactions h....

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.... 2007-8 CITA- XVIII accepts Capital gains u/s 45 CIT(A) order attached 7 2006-7 CITA-XVIII, accepts Capital gains u/s 45 CIT(A) order attached Case Law 1    2008-9/ 2010 11 Gyan Enterprises P Ltd - ITA No 4149/2013 and ITA No 6116/2014 9. The Ld. Counsel for the assessee also relied on the decision of the coordinate Bench of the Tribunal in the case of M/s. Gyan Enterprises (P) Ltd. Vs. DCIT and in ITA No.6116/Del/2014 order dated 19.10.2015 in A.Y.2008-09 and 2010-11 respectively. 10. The Ld. Counsel for the assessee further submitted that the total investments made by the assessee is Rs. 123 crores and holds inventory of about Rs. 11 crores and has not even done sale/ purchase of 5% of the total investment during th....

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....there is no material to show that shares and security purchased in the year under consideration and classified as investment in books were actually intended to be long term investment. According to him besides sale of shares shown as investment on the first day of the accounting year, the assessee has also traded in quoted shares during the year part of which has been disclosed as business income. The assessee is regularly trading in shares over the years and, therefore, there is no justification for treating the transaction as disposal of investments. It is the submission of the Ld. Counsel for the assessee that out of 72 transactions 41 transactions relate to transactions out of opening stock and whatever shares have been purchased during....