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Issues involved: Appeal against order u/s 143(3) for assessment year 2007-08 - Treatment of income from sale of shares as business income instead of short term capital gain - Charging of interest u/s 234B & 234D and withdrawal of interest u/s 244A - Request for amendment of grounds of appeal.
Treatment of income from sale of shares: The appellant contested the assessment of income on sale of shares as business income instead of short term capital gain, as declared by the appellant. The AO and CIT(A) treated the income contrary to law and facts. The appellant argued for the income to be assessed as short term capital gain. The CIT(A) partly allowed the appeal but sustained the addition made by the AO, treating it as business income. The appellant's counsel argued for the correct treatment based on transactions in Mutual Funds, citing relevant case laws. Charging of interest u/s 234B & 234D and withdrawal of interest u/s 244A: The appellant denied liability for interest charged u/s 234B & 234D and withdrawal of interest u/s 244A, stating it was contrary to law and facts. The Ground No. 3 of the assessee related to mandatory charging of interest u/s 234B and 234D, with the possibility of consequential relief. The Ground No. 4 was of a general nature and required no adjudication. Amendment of grounds of appeal: The appellant requested the indulgence of the court to add, amend, or alter the grounds of appeal before the date of hearing. The counsel for the assessee did not press Ground No. 1, which was subsequently dismissed. The only effective ground remaining was related to the treatment of income from sale of shares, which was allowed for statistical purposes. The matter was directed to be restored back to the AO for verification and fresh decision after considering the transactions in Mutual Funds. Conclusion: The appeal of the assessee was partly allowed for statistical purposes, with the matter being sent back to the AO for reevaluation.
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