2025 (4) TMI 2078

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....ave been raised by the Revenue: - "1. Whether CIT(A) is correct in facts and law to treatment of taking LTCG on equity shares amounting to Rs. 7,74,38,600/- claimed as exempt w/s 10(38) of the IT Act, 1961 LTCG (non STT paid) of Rs. 5,28,121/- & STCG of Rs. 83,12,672/- as to units of debt oriented mutual funds aggregating to Rs. 8,62,99,450/- ignoring a) That assessee was engaged in the business of trading in shares and it was the sole activity of the assessee which is also an admitted object of assessee firm as per partnership deed. b) That assessee has undertaken frequent and voluminous shares transaction. c) Various other findings and observations as discussed in the assessment. 2 The appellan....

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....ead business or profession of Rs. 5,81,767/-. The copy of P & L account and computation of income submitted by the appellant is scanned and reproduced below: .................. ................. 4.2 During the course of the appellate proceedings, the appellant has made detailed written submissions which have been perused. The appellant submitted that this issue was already settled in the appellant's own case for A.Y 2010-11 by Hon'ble ITAT Delhi in ITA NO.6064/Del/2014 dated 23/10/2018 and also in AY 2013-14 in ITA No.253/Del/2017 dated 06.02.2020. In both the decision Hon'ble ITAT held that the capital gain earned by the appellant cannot be treated as business income and dismissed the revenue's ap....

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....utual fund, derivatives, etc. as investment assets and some as stock-in-trade. The intention behind showing some shares, securities, mutual fund, derivatives, etc. as investment assets was to avoid tax or pay tax at a lower rate. It was specifically submitted by the Ld. Sr. DR that the assessee firm came into existence to derive profit from the business of purchase and sale of shares, securities, mutual fund, derivatives, etc. For that, all six partners pooled their funds for business as evident from the partnership deed wherein the objects of the partnership firm were shown as 'to carry on business of funding and investments'. The Ld. Sr. DR, emphasizing on the quantum and frequency of transactions of purchase and sale of shares, securitie....