2015 (12) TMI 759 - AT - Income Tax

Profits from shares - CIT(A) s directing AO to treat his share profits as business income in case of shares held for less than 30 days and capital gains heaving holding period more than that - Held that - It transpires that the Commissioner of Income Tax(A) has followed the tribunal s order in deceased assessee s own case relating to preceding assessment years in directing the Assessing Officer to treat profits arising from shares held less than 30 days only as business income and exceeding the said period to be capital gains. There is no distinction on facts forthcoming. The Revenue merely pleads that its appeal u/s. 260A of the Act is pending before the hon ble high court. We do not see the same to be a plausible explanation for adopting a different view. More so, when the same has arisen in assessee s own case in preceding assessment years without these being any change in facts and circumstances. We adopt consistency in these facts and reject the Revenue s sole substantive ground. - Decided against revenue

Summary

Issues involved:
Revenue's appeal challenging CIT(A)'s order on treatment of share profits as business income.

Detailed Analysis:

1. Background and Grounds of Appeal:
The Revenue's appeal for A.Y. 2008-09 contested the CIT(A)'s order directing the Assessing Officer to treat share profits as business income based on holding period. The assessing authority initially treated all profits as business income.

2. Facts of the Case:
The deceased assessee was engaged in trading shares and declared long and short term capital gains. The Assessing Officer rejected the explanation and treated the gains as business income. The CIT(A) partly accepted the assessee's contentions based on past ITAT decisions.

3. Contentions and Submissions:
The appellant argued that previous ITAT decisions favored treating long term gains as capital gains and short term gains based on holding period. The assessing officer disregarded these decisions, leading to the dispute.

4. Decision and Ruling:
The CIT(A) upheld the ITAT's previous decisions, directing the Assessing Officer to treat long term gains as capital gains and short term gains based on the holding period. The Revenue's appeal was dismissed due to lack of substantial changes in facts and circumstances.

5. Conclusion:
The appellate tribunal maintained consistency with past decisions, rejecting the Revenue's appeal and upholding the CIT(A)'s order. The judgment emphasized adherence to established legal precedents in determining the tax treatment of share profits based on holding periods.

This detailed analysis covers the issues, facts, contentions, ruling, and conclusion of the legal judgment regarding the treatment of share profits as business income, providing a comprehensive understanding of the case.