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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 ..... l. The only issue in this appeal of revenue is, whether the asset i.e. shares held by assessee for 12 months is eligible to be assesseed as long term capital gain or short term capital gain. For this, revenue has raised following ground no.1: "1. That in the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 72,26,423/- by treating the same as Long Term Capital Gain ignoring the fact that it is actually Short term capital gain." 3. Briefly stated facts are that the assessee's nature of business is NBFC activities, engaged in the business of trading, investment in shares and graning of loans and advances. In the present case before us, original assessment was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ays which includes February of 29 days. The matter of leap year is a special incident occurs once in a four year and the Act generally deals with general incident. When there is nothing specifically mentioned in the Act regarding the special incident then the general counting will be accepted. Hence, in no way the period of holding is more than 12 months. Again regarding the cited case of Manìsh Maheswary and Vegetable Products Ltd. as such there is no two ìnterpretatìon or any ambiguìty. It has whatsoever with a holding of the shares was not more than 12 months. Hence, capital gain arises from the sale of two sets of shares of Vam Organics Ltd. (Later change to Jubillant Organosys Ltd.) is considered as Short-te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the share should be held more than 12 months and only then the assessee can take benefit of the provisions of section 10(36) of the Act in respect of exemption of long term capital gain in relation to eligible equity shares. The provision of section 2(42A) of the Act talks of short term capital asset which means a capital asset held by an assessee for not more than 12 months immediately preceding the date of its transfer. The relevant provision of section 2(42A) of the Act reads as under: "2(42A) "Short term capital asset" means a capital asset held by an assessee for not more than thirty six months immediately preceding the date of its transfer. Provided that in the case of a share he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17.2. In order to give incentive for investment in equity shares, a new clause (36) has been inserted in section 10 providing that any income arising from transfer of a long term capital asset, being eligible equity share in a company listed on any recognized stock exchange in India and acquired on or after March 1, 2003, but before March 1, 2004, and held for a period of twelve months or more shall be exempt from tax. The trransaction of sale of such share should have been entered into on a recognized stock exchange in India. 17.3 It has also been stated in the Explanation that "eligible equity share" for the purposes of this clause shall mean (i) any equity share in a company which is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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