TaxTMI 
TaxTMI 
2022 (6) TMI 639
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....the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the A.O.'s action of disallowance of setoff under section 70 of the Income Tax Act, 1961 of share trading business loss against income from profession without giving the opportunities of being heard to justify the same as business loss. The appellant prays that the disallowance of set off on account of treating share trading as short term capital loss may please be deleted. Ground No. 2: Without prejudice to Ground No. 1 and on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in considering the A.O.'s action of treating the share trading business loss of Rs. 12,96,828/- as Short Term Capital Loss. ....
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....so incurred certain expenses in relation to the same. Accordingly, in view of the above Circular, the assessee should be allowed the benefit of set off of short-term capital loss against professional income. The learned Ld. CIT(Appeals), however rejected the assessee's appeal on the ground that as per the Circular quoted above, one of the conditions to treat the share transaction as business income was that "the quantum of profit made from the sale was significantly higher than the dividend earned by the taxpayers then this indicates that the main purpose of the taxpayer is to earn profit". However, in this case, no such details of shares transacted and dividend earned on the shares is provided by the assessee. Further in the instant ca....
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....urchase of shares or has reflected shares as investment in the balance sheet cannot solely be a ground to treat loss on purchase and sale of shares as capital loss. In response, the learned DR drew our attention to para 4.2.2 of assessment order wherein the AO has observed that there assessee has reflected the shares as "investment" in the balance sheet. He further submitted that the assessee has taken delivery of shares which itself indicates that shares were primarily bought for investment purposes. The learned DR submitted that in the assessee's own books of accounts, shares have been reflected as "investment". Hence the assessee has himself treated purchase of shares as an investment. For this purpose, the assessee has employed his ....
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.... 13.12.2005 [F. No. 149/287/2005-TPL] and one of the criteria mentioned therein is whether, the purchase is made solely with the intention of resale at a profit or for long-term appreciation and/or for earning dividends and interest and also the typical holding period for securities bought and sold. We see that in instant facts, almost all the shares which the assessee purchased during the year were sold by him. As noted above, out of 34 stocks purchased during the year, the assessee sold 32 of those scripts, which is a clear indicator that the intention at the time of purchase of scripts was to sell them at a profit. On the issue that the assessee has employed his own capital or reflected shares as investment, we note that in the case of C....