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TMI Blog2012 (8) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee. - I.T.A. No. 908/Ahd/2010 - - - Dated:- 6-7-2012 - Shri G. C. GUPTA, and Shri A. K. GARODIA, JJ. Appellant by: Shri Rahul Kumar, Sr. DR Respondent by: Shri S N Divotia, AR O R D E R PER SHRI A. K. GARODIA, AM:- This is revenue s appeal directed against the order of Ld. CIT(A) XIV, Ahmedabad dated 08.10.2009 for the assessment year 2006-07. The grounds raised by the revenue are a under: 1) the Ld. CIT(A) XIV, Ahmedabad has erred in law and on facts in directing to treat a sum of Rs.9,76,190/- as long term capital gain as shown by the assessee and not as business income. 2) On the facts and in the circumstances of the case, the Ld. CIT(A) XIV, Ahmedabad ought to have upheld the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t capital gain of Rs. 10,94,525/-. In most of the cases .the .assessee has purchased shares through IPO and sold it shortly when the prices of the shares have risen. Further, to make transactions in shares, the assessee has obtained loans from banks and paid interest on it and the assessee is a director of a company the business activity of which is of share trading. From the accounts also, it was seen that assessee was doing day today transactions in shares, it has shown the shares as assets and the same were not shown as investments and, therefore, the transactions in shares should have been held adventure in the nature of trade and should have been taxed as income from business and not as capital gain. The assessee was, therefore, asked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losed as amount invested in shares. The Deptt. has accepted my shares as investment and profit on shares as short term profit if it is within one year and Long term profit if it for more than one year. iv) There was a boom in share market in F.Y. 2005-06 and IPOs, applied for more IPOs for investment and sold it as the gain were substantial but our overall intention was to invest in good companies even the percentage of sale of shares to total investment was very negligible. v) Even last five years figures of dividend income given in above point (ii) shows that year by year dividend income is growing and not the gain on shares. vi) The investment in shares was over the period of last 25 years and the sale amount in current year was ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment and sold it as the gain was substantial. It was stated that he has taken overdraft and not loan from bank, but this makes no difference as both overdraft and loans are considered as loans from the bank and interest has to be paid on these loans. The assessee himself admitted that the bank loan has been used to apply for many IPOs when the amount is big. Further, even assessee's treatment of LTCG as exempt can not be accepted because of the fact that the assessee has sold shares held for more than a year, which was also purchased from the borrowed money on which interest was paid. To be more clear, the assessee has used borrowed money to purchase IPOs, the same were sold after a holding for more than one year and therefore, the gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order whereas Ld. A.R. of the assessee supported the order of Ld. CIT(A). He also placed reliance on the judgment of Hon ble Gujarat High Court rendered in the case of CIT Vs Revashankar A Kothari as reported in 283 ITR 338. He also submitted the details of purchase, date of shares, date of sale of these shares and the period of holding of these shears before sale as per which only in case of three shares of Bank of Maharashtra, Dredging Corporation and Hindalco, the shares were held for one year, 2 years and 2 years respectively whereas in case of one company i.e. Cholamandlam, the shares were held for 8 years and remaining shares were held for 10 yeas or more up to 22 years. He submitted that under these facts, it cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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