9911796707
TMI Blog2015 (8) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... on transfer of 36,042/- shares of M/s TECNIMONT ICB Pvt. Ltd. to M/s TECNIMONT s.p.s., Italy. The assessee has also offered short term capital gains of Rs. 34,64,485/-, however, the AO has accepted assessee's claim of long term capital gain but treated short term capital gains as business income. 4. By the impugned order, the CIT(A) confirmed the action of the AO for treating short term capital gains as business income. 5. From the record, we found that assessee was investing in shares as investor. In the earlier assessment year 2006-07 & 2007-08, the short term capital gain offered by the assessee was accepted by the AO while making scrutiny assessment u/s.143(3). Furthermore, in the immediately subsequent assessment year i.e. 2009-10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old provisions of the Income-tax Act, profits or gains arising to an investor from the transfer of securities were charged to tax either as long term capital gains or short term capital gains depending on the period of holding of the said securities; Short-term capital gains arising from transfer of securities were taxed at the applicable rates (normal rate) and Long-term capital gains were taxed @ 20%, after adjusting for inflation by indexing the cost of acquisition. For listed securities, the taxpayer had an option to pay tax on long-term capital gains @ 10% but without indexation. For Foreign Institutional Investors (FIIs), the long-term capital gains and short-term capital gains were taxed at the rate of 10% (without indexation) and 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arising from sale of such securities to an investor including FIIs shall be charged at the rate of ten per cent. These amendments apply to assessment year 2005-2006 and subsequent years. Through Finance Act, 2008, sections 111A and 115AD have further been amended whereby the rate of tax on such short-term capital gain has been raised to fifteen percent. Thus, w.e.f. 01.10.2004; on the share transactions subjected to STT; concessional tax rate of 10% (which has been increased to 15% from AY 2009-10) are applicable in respect of STCG whereas no tax is chargeable in respect of LTCG. It is also noted that the CBDT vide its Circular no.4/2007, dated 15.06.2007 has also recognized possibility of two portfolios, i.e. one 'Investment portfolio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d vs CIT (2008) 301 ITR 309 (SC), it was held that (Page 323):- Rules of executive construction in a situation of this nature may also be applied. Where a representation is made by the makers of legislation at the time of introduction of Bill or construction thereupon is put by the executive upon its coming into force, the carries great weight.'' 10. The Hon'ble Delhi High Court in ARJ Security Printers, 264 ITR 276 and Neo Pollypack Pvt Ltd. 245 ITR 492 (Del.) held that even when the doctrine of res judicata does not apply to income tax proceedings, where a issue has been decided consistently in earlier assessment years in particular manner, the same view should prevail in subsequent years unless there is a material change in facts, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
