2011 (5) TMI 1070 - AT - Income Tax

Summary

Issues involved: Cross-appeals against the order of the Commissioner of Income-tax (Appeals) for A.Y.2006-07, challenging treatment of long term capital gain, taxation of transaction in shares/securities/mutual funds, disallowance of legal and professional charges, disallowance of repairs and maintenance expenditure, and reducing income on account of export incentive and interest income for deduction under Section 80IB.

Long term capital gain treatment:
- The Revenue challenged the order of the CIT(A) in treating long term capital gain as business profit.
- The Tribunal found the issue covered in favor of the assessee based on previous orders and dismissed the Revenue's appeal.

Taxation of transaction in shares/securities/mutual funds:
- The assessee challenged the taxation of transactions under "Income from business or profession" instead of "Income from Capital Gains."
- The Tribunal held that the issue was decided against the assessee in a previous year and confirmed the order treating the transactions as income from business.

Disallowance of legal and professional charges:
- Disallowance of charges paid to the assessee's son was upheld by the Tribunal based on lack of services rendered for the business.
- The issue was considered in a previous year, and no change in circumstances was noted, leading to the dismissal of the assessee's challenge.

Disallowance of repairs and maintenance expenditure:
- The CIT(A) disallowed part of the expenditure as capital in nature without providing a reasoned order.
- The Tribunal remanded the issue back to the CIT(A) for reconsideration with proper explanation and opportunity for the assessee.

Reducing income on account of export incentive and interest income:
- The CIT(A) confirmed the reduction of income based on previous orders and legal precedents.
- The Tribunal upheld the CIT(A)'s decision, finding the issue covered against the assessee.

Conclusion: The department's appeals were dismissed, while the CO in the case of Smt. Seema Ajay Ranka was partly allowed for statistical purposes. The CO in the case of Dr. Ajay Ranka was dismissed.