9911796707
|
Home
Issues:
1. Challenge to the order of the Income-tax Appellate Tribunal u/s 263. 2. Classification of income/loss from transactions in shares as business income/loss or capital gains. Issue 1: The tax case appeals were filed by the revenue challenging the correctness of the Income-tax Appellate Tribunal's order u/s 263. The Commissioner of Income-tax revised the assessment order, considering the shares sold by the assessee as "capital investment" and the profit as "capital assets" falling under "capital gains." The Commissioner noted the frequent purchase and sale of shares by the assessee, classifying the transactions as "business loss" instead of "capital loss" granted by the assessing authority. The Tribunal allowed the appeals of the assessee, emphasizing that the shares were held as investments, not as "stock-in-trade" or "current assets," resulting in "capital gain." Issue 2: The assessee claimed loss on the sale of shares as business loss for the assessment years 1994-95 and 1995-96. The assessing authority treated it as capital loss, but the Commissioner of Income-tax revised the order, directing to assess the income/loss from share transactions as business income/loss. The assessee contended that the shares were capital assets, relying on being an investment company and citing a decision of the Calcutta High Court. The Tribunal, following a Supreme Court decision, held that the intention to carry on business in shares determines the classification of income, noting the consistent treatment of shares as investments by the assessee. The revenue appealed, arguing that the shares were intended as "stock in trade," but the Court upheld the Tribunal's decision based on the factual findings and lack of evidence to question the classification as capital assets.
|
