TaxTMI 
TaxTMI 
2024 (2) TMI 1686
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....was justified in deleting the addition on account of business income from trading in shares made by the assessing officer without considering the findings recorded by the assessing officer having a direct bearing on the issue and arriving at an assumption which is not supported by any evidence or material on record? B. Whether the ITAT was legally justified in holding that income from trading in shares was not in the nature of business income by ignoring the comments of the tax auditor in Form 3CD that the assessee was engaged in the business of trading in shares and securities and a fact that the assessee is engaged in earning income from trading in shares in different assessment years? C. Whether the ITAT is legally just....
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.... undersigned in the course of the appellate proceedings showed the investments at Rs.42,19,89,569/- as on 31.3.2007. b) It was categorically stated by the AR that during the A.Y. 2007- 08, the appellant had two portfolios, one an investment portfolio and another trading portfolio. The appellant in this year traded in shares as trading activity and hence no stock was carried forward. c) During the assessment year 2008-09 the appellant has not traded in shares as there was no stock and only sold investments out of the investment portfolio. d) To substantiate the above transactions, the AR of the appellant filed details of shares in the investment portfolio where the investments were held for more than 12 months and ....
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....e, where capital is contributed by its partners in the form of shares and securities which were held by the firm for a period of more than twelve months after holding the same in Investment Portfolio and realized thereafter it has to be treated on Investment account resulting in capital gains rather than business income. This position has since been reiterated by the Supreme Court in CIT vs. Wallfort Share & Stock Brokers (P) Ltd. (2010) 326ITR 1 (SC). " 6.9 After analyzing the issue and considering the judgments of various courts, and also on the basis of evidence filed by the appellant I find the intention of the appellant is to hold the investment for a certain period and to reap the profits at an appropriate time. It is also se....
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....55,83,427 and at the close of the year it has investment of Rs. 88,56,09,456. During the year the assessee acquired fresh investment of Rs 85,87,12,486 and realised the investment of Rs.72,84,88,592/-. On sale of this investment assessee earned gain of Rs. 11,98,02,135/- and shown as long term and short term capital gains. In the computation of income filed along with the return of income assessee declared long-term capital gain of Rs 11,22,62,709/- and claimed exemption under section 10(38) paying security transaction tax and also disclosed long term capital loss of Rs. 1,59,123/-. It also disclosed short-term capital gain of Rs. 12,71,939 which was chargeable to tax at the rate of 15% and short-term capital gain of Rs. 64 to 6610/- taxabl....
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....lower rate by claiming exemption under section 10(38) for short-term capital gain at lower tax - rates. Further whatever is the amount earned by the partnership firm if distributed to the partners would also be tax-free in their hands. Therefore, he stated that there is no explanation by the assessee that if the Firm. is not doing are engaged in the business, then the question arises as to why and what for the Firm was constituted. According to him in the present case 8 partners have come together to put their fund in a collective manner for its better utilisation which is nothing else but business or adventure. He further held that the transactions mentioned by the assessee shows that the assessee has sold securities for value of Rs. 71,74....
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....of securities in an organised and regular manner and showing income therefrom under a different head is just a strategy to avoid taxation. Hence, he held that assessee is engaged in the business. Further, he stated that looking to the volume, frequency of the transaction and also the quantum of investment and the admitted intention of the assessee confirmed that the income earned by it on purchase and sale of securities are not income from investment. He after relying on the several decisions and held that main motive of purchasing and selling of the shares and security is too on profit and claiming benefit of exemption or taxation at a lower rate by sewing the same income under the* head capital gains. He further held that during the year ....