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2011 (1) TMI 1377 - ITAT MUMBAItransactions of purchase and sale of shares - nature of trade - HELD THAT:- we are of the view that if the principles laid down by the Tribunal in the case of Sarnath Infrastructure Ltd.[2007 (12) TMI 261 - ITAT LUCKNOW-B] as well as the guidelines issued by the CBDT are applied to the facts of the present case, it clearly emerges that the transactions of purchase and sale of shares entered into by the assessee were in the nature of trade and the ld. CIT(A) was not justified in treating the said transactions as made by the assessee in the capacity of investor and trader merely on the basis of holding period. In that view of the matter, we set aside the impugned order of the ld. CIT(A) on this issue and restore that of the A.O. Ground No. (i) & (ii) of the Revenue’s appeal is accordingly allowed whereas ground No. 1 & 2 of the assessee’s appeal are dismissed. claim for deduction on account of donations and rebate for STT - income from share transactions - business income - HELD THAT:- Since we have already held that the entire profit arising from transactions of shares is chargeable to tax in the hands of the assessee under the head ‘profits and gains of business/profession’, we direct the A.O. to allow consequential relief to the assessee on account of donations and STT paid after necessary verification. Ground No. 3 of the assessee’s appeal is accordingly treated as allowed.
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