TaxTMI 
TaxTMI 
TaxTMI 
2014 (4) TMI 1274
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....2007-08 on 31-10-2007 declaring its total income as Rs. 7,93,48,354/-. The case of the assessee was selected for scrutiny and assessment was completed on 30-12-2009 determining total income of the assessee as Rs. 21,91,12,800/-. The Commissioner of Income Tax vide order dated 15-02-2011 passed u/s.263 of the Income Tax Act, 1961 (herein after referred to as 'the Act'), set aside the assessment order and directed the Assessing Officer to frame assessment Denovo. The Commissioner of Income Tax observed that the assessee has earned Short Term Capital Gains from the sale of debentures and shares in the period relevant to the AY.2007-08 and the Assessing Officer did not carry out any enquiry as warranted by facts and circumstances of the case in....
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....g to the conclusion that in case of un-listed shares, the period of holding should be more than twelve months to classify them as Long Term Capital Asset. The ld.DR further submitted that the Commissioner of Income Tax in his order dated 15-02-2011 had directed the Assessing Officer to determine the Short Term Capital Gain on sale of shares. It is not open to CIT(Appeals) to reverse the findings of the Commissioner of Income Tax in appeal. The ld.DR further referred to the definition of 'Short Term Capital Asset' defined in section 2(42A) of the Act to say that it is only shares listed on the recognized stock exchange that qualify as Short Term Capital Asset which are held for a period of twelve months. Whereas, in the instant case, th....
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....mentioned in the CBDT Circular No.684 dated 10-06-1994. The said circular clearly distinguishes between the 'securities' traded in the recognized stock exchange and the shares of the companies. In order to support his contentions, the ld.AR placed on record a copy of Circular No.684 and relied on the judgment of the Hon'ble Madras High Court in the case of CIT Vs. Shanmugavel Nadar (KSP) reported as 153 ITR 596 (Mad). 6. We have heard the submissions made by the representatives of both the sides. We have also perused the orders of the authorities below as well as the decisions on which the representatives of both the sides have placed reliance. The issue in appeal is; Whether there is any distinction between unlisted shares and shares....
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....ssets which are not shortterm. Short-term capital assets are those capital assets which are held for a period of up to 36 months. However, the Finance Act, 1987, through an amendment to the provisions of section 2(42A), reduced the maximum period of holding in respect of company shares from 36 months to 12 months for being treated as short-term capital assets. 16.2 There are many financial instruments, other than company shares, through which the investors are entering the capital market. The units of the Unit Trust of India and Mutual Funds specified under section 10(23D) of the Income-tax Act are the instruments through which the small investors are increasingly getting the benefit of investment in the capital market. In order to provi....
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.... per the Securities Contracts (Regulation) Act, 1956, the term 'Securities' include shares. The relevant extract of section 2(h) of the Securities Contract (Regulation) Act, 1956 which defines the term 'securities' is as under:- "2(h). Securities include: I. Shares, Scripts, stocks, bonds, debentures, debenture stock or other remarkable securities of a like nature in or of any incorporate company or other body corporate............... i(a)xxxxx i(b)xxxxx II. xxxxx III. xxxxx..................." Although, under the Securities Contracts (Regulation) Act, the term 'Securities' include shares, but in section 2(42A) of the Act, shares have been mentioned separately. Thus, the intention of the Legislature while introducing the am....