2011 (8) TMI 1377 - AT - Income Tax

Summary

Issues involved: The appeal by revenue against the order of CIT(A) treating the income declared by assessee as Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) on share transactions as against the order of Assessing Officer treating the same as income from business.

Issue 1: Classification of income from share transactions

The Assessing Officer treated the LTCG and STCG earned by the assessee as income from business due to the systematic and organized manner of share transactions. The CIT(A) upheld the income disclosed under LTCG and STCG based on earlier years' assessments and a judgment of the Kolkata Tribunal in the assessee's own case. The CIT(A) directed the Assessing Officer to allow the claim of the appellant treating the gains from share transactions as LTCG instead of business income, following previous orders on identical issues and facts. The lower authorities found the facts and circumstances to be exactly identical, leading to a concurrent finding in favor of the assessee as the revenue failed to point out any differences. Consequently, the revenue's appeal was dismissed.

In summary, the Appellate Tribunal ITAT Kolkata dismissed the revenue's appeal against the order of CIT(A) regarding the classification of income from share transactions as Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) instead of business income. The decision was based on the systematic and organized manner of share transactions and previous judgments in the assessee's own case, leading to a concurrent finding in favor of the assessee due to identical facts and circumstances.