9911796707
TMI Blog2012 (7) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10(2A) of the Income Tax Act, 1961. The assessee is also director in Ecolab Hygiene Chemicals Pvt Ltd., and Nalin Pharmaceuticals Pvt. Ltd. 3. In the appeal under consideration the issue involved is as to whether capital gain of ₹ 33,32,310/- arising out of sale of shares, units and Securities through Portfolio Management Services is to be assessed under the head "capital gains" or "business income". The ground of appeal taken by assessee reads as under: "1. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax(Appeals) erred in confirming the addition Capital Gains (arising out of sale of shares, units and securities through Portfolio Management Services) of ₹ 33,32,310/- as "P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed under the head "capital gain" or under the head "business income". 6. During the Financial Year 2002-03, assessee placed fund of ₹ 50,00,000/- with M/s. Kotak Securities as his Portfolio Manager (PMS) for purchase and sale of shares. Income derived from PMS account was offered under the head "business and profession" while filing the return for that AY. The AO did not accept the contention of the assessee and treated the income/earning on PMS account as business income of the assessee. The assessee filed appeal before ld CIT(A). 7. On behalf of assessee, it was contended that assessee is a partner in partnership firms carrying on business of "Indenting Agent". He is also director in Private Limited Companies. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income' and not as 'capital gains'. Hence, assessee is in further appeal before the Tribunal. 8. Before us Authrorised Representative and the Departmental Representative made the same submissions that were made in the case of Manan Nalin Shah (ITA Nos. 6166/Mum/2008, 2125/ Mum/2008 and 4126/Mum/2008 AY. 2003-04, 2004-05, 2005-06). After considering the rival submissions and perusing the material produced before us we have decided in those appeals (Paragraphs 15-16 of the order) that income earned by the assessee through PMS has to assessed under the head capital gains and not under the head income from business or profession. Following the said order ground no.1 is decided in favour of the assessee in part. 9. Before we part with, we may ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
