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TMI Blog2015 (10) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned the holding period of shares as twelve months or more for claiming exemption in respect of long term capital gains in relation to shares. There is no dispute that the assessee has held the shares for twelve months, as noted in the assessment order by revenue, there is no scope for any other interpretation other than that the shares held by the assessee are long term capital asset eligible for exemption under clause (36) of section 10 of the Act. Hence, we confirm the order of CIT(A) and allow the claim of the assessee. - Decided in favour of assessee. - I.T.A No. 51/Kol/2011 - - - Dated:- 7-5-2014 - Mahavir Singh And Abraham P. George, JJ. For the Appellant : P.K. Chakraborty. For the Respondent : S.M. Surana. ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 16.03.2009 for the reason that the capital gain was to be assessed as short term capital gains, which has escaped assessment. According to AO, the assessee has declared capital gains of ₹ 72,29,600/-, which was a short term capital gain but assessee declared the same as long term capital gain. According to AO, this being a short term capital gain is not exempt u/s. 10(36) of the Act and is to be assessed as short term capital gain in view of the provisions of section 2(42A) of the Act. The main reason of the AO to assess the same as short term capital gain was that as per the provisions of section 2(42A) of the Act clearly states that in the absence of words from and to , which clearly indicates to exclude the date to purchase an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A), who held that the shares are held for twelve months and are eligible for claiming the same to be long term capital gain as per the provision of section 2(42A) of the Act as well as section 10(36) of the Act. Aggrieved, revenue came in appeal before us. 5 We have heard rival submissions and gone through facts and circumstances of the case. The admitted facts are that following are the details of purchase and sale of two sets of shares: Sl. No. Name of the company Dt. of purchase Quantity Purchase amount (Rs.) Dt. Of sale Quantity Sale Amount (Rs.) Remarks 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a share held in a company (or any other security listed in a recognised stock exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) of a unit of a Mutual Fund specified under clause (23D) of section 10) (or a zero coupon bond), the provisions of this clause shall have effect as if for the words thirty six months , the words twelve months had been substituted.' Similarly, the claim made by assesseethat shares sold are long term capital asset exempt u/s. 10(36) of the Act. The relevant provisions of section 10(36) reads as under: 10(36)- any income arising from the transfer of long term capital asset, being an eligible equity share in a company purchased on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bai, as on the March 1, 2003, (ii) any equity share of a company allotted through a public issue on or after the March 1, 2003, and listed on a recognised stock exchange in India before the March 1, 2004. 17.4 It is further clarified that the term public issue used in clause (ii) of the Explanation to section 10(36) shall include the offer of equity shares in a company to the public through a prospectus, whether by the company or by the existing shareholders of the company. 17.5 This amendment will take effect from April 1, 2004, and will, accordingly, apply in relation to the assessment year 2004-05 and subsequent years'. 6. We find that by Finance Act, 2003 a new clause (36) has been inserted in section 10 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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