TaxTMI 
TaxTMI 
2024 (6) TMI 424
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....hich was explained due to Covid pandemic. Hence the delay is condoned. 2. The brief facts of the case are that the assessee filed his return of income for A.Y. 2016-17 on 19.10.2016 showing total income of Rs. 1,43,31,550/-. The assessment was completed on the income as per return but Short-Term Capital Gain (STCG) of Rs. 1,37,46,867/- in respect of shares purchased through IPO was treated as business income by the A.O. Aggrieved with the order of ld. A.O., the assessee filed an appeal before Ld. CIT(A) who vide the impugned order has upheld the treatment as given by the A.O. The assessee is in appeal before us. 3. The assessee has raised the following Grounds of Appeal: 1. The learned CIT(A) has erred in law and on facts in ....
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....l the transactions were delivery-based transactions. Though the assessee had also derived gain on certain "intra-day activity", such gain was not shown as STCG. The Ld. A.R. pointed out that the assessee was consistently showing income derived on sale of shares as STCG which was accepted by the department in the earlier Assessment Years i.e. A.Ys. 2014-15 & 2015-16. Further that the case for A.Y. 2015-16 was selected for scrutiny wherein this issue was examined and the A.O. had accepted the STCG disclosed by the assessee in that year. According to the Ld. Senior Counsel, the revenue was not correct in changing the nature of income from STCG to business income in the current year. He submitted that following the principle of consistency, the....
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....es which was accepted by the Department in the order u/s 143(3) of the Act dated 28.11.2017. In the current year, however, the Department has taken a different view and treated this gain as business income. 7. The contention of the Revenue is that the intention of the assessee was to earn profit and not long-term appreciation or earning of dividend. It is precisely for the reason that there was no intention for long-term appreciation that the shares were sold within 12 months and gain was shown as STCG. The earning of profit is always the intention whether the gain is treated as business income or capital gain. When the Act provides for a mechanism for disclosure of Short-Term Capital Gain, where the holding period is less than 12 months....
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....e had shown the sale of shares held for less than 12 months as STCG in the past year which was accepted by the Department in the scrutiny assessment. As the facts were identical, the Revenue was not correct in changing its stand without any valid reason to treat the STCG disclosed by the assessee as business income in the current year. Further, no reason has been given by the Department for changing its stand for the treatment of the gain arising from sale of shares. The principle of consistency has be applied in respect of listed shares and securities held for a period of less than 12 months as well so as to reduce litigation and uncertainty. 9. Hon'ble Gujarat High court has held in the case of Deepaben Amitbhai Shah (supra) that when ....