2020 (11) TMI 594

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..... Kottaram, DR ORDER PER A. MOHAN ALANKAMONY, AM.: This appeal is filed by the assessee against the order of the Ld. CIT (A)-8, Hyderabad in appeal No. 50/2008-09 dated 30/11/2015 passed U/s. 143(3) r.w.s 250(6) of the Act for the AY 2006-07. 2. The assessee has raised several grounds in its appeal however, the crux of the issue is that the Ld. CIT (A) has erred in upholding the order ....

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.... of the assessee is trading in shares the same has to be treated as income from business and not under the head 'Income from shorter term capital gain'. Accordingly, the Ld. AO computed the net income of the assessee under the head "Income from business" at Rs. 12,49,567/- (sic) Rs. 12,85,567/- after disallowing proportionate expenses of Rs. 615/- towards administration expenses, interest, and ban....

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....the assessee was disclosed as "investments" and not as "stock-in-trade". To evidence the same the Ld. AR referred to the paper book page No.3 to 8 filed by the assessee. It was therefore pleaded that the gain earned by the assessee from the sale of its investment in equity shares may be treated as income from "short term capital gain" and not under the head ' income from business'. The Ld. DR on t....

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....ing the equity shares purchased by it as "investment" which is evident from the statement of accounts/Balance Sheet of the assessee. It is pertinent to mention that the Chartered Accountant of the assessee as well as the Ld. Revenue Authorities may have been confused on the issue because the assessee though have classified the purchase of equity shares as investment in its Balance Sheet, the same ....