TaxTMI 
TaxTMI 
2021 (8) TMI 901
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....n confirming the Short term capital gain (STCG) computed by the AO. He ought to have appreciated that the revised STCG statement filed before him by your appellant gives the correct STCG as per the provisions of Income TAX Act, 1961 and should be accepted for calculating income tax on STCG. 2. On these facts and under these circumstances, the learned CIT (A) erred in confirming the STCG without appreciating the fact that D'mat statement is merely a record of physical quantity of shares owned by your appellant and cannot be considered for calculation of STCG under the Income Tax Act ,1961. He ought to have appreciated that FIFO method is the accepted method for valuing cost of acquisition of the shares for the calculation of STCG . 3....
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....not offered to tax the speculation income and short term capital gain on many scripts in the return of income and accordingly issued a show cause notice dated 07.12.2016 to explain the same which was replied by the assessee. The AO after considering the reply of the assessee added to the income of the assesse Rs. 78,934/- on account of speculation income and Rs. 23,44,217/- on account of short term capital gain on sale of shares on the ground that assessee himself accepted during the assessment proceedings that this has happened due to mistake of the accountant. 5. In the appellate proceedings the assesse, challenged only the addition of Rs. 23,44,217/- which was dismissed by observing that the assessee has himself admitted that this short....
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....d in the Demat account. Therefore, according to the assessee the calculation of short term capital gain should be made by following FIFO method and thus the shares held by the assessee prior to 17.07.2013 should be considered for computing short term capital gain and not the bonus shares. However, the ICICI Bank securities statement had a mistake wherein the sale of shares were shown out of bonus shares considering the cost at nil. The assessee also produced correct statement before ld CIT(A). However, the Ld. CIT(A) failed to consider the same and confirmed the order of AO. Similarly, there are several other mistakes which were pointed out by the Ld. Counsel of the assessee before us. Under these circumstances, we are of the opinion that t....