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TMI Blog2016 (7) TMI 843X X X X Extracts X X X X X X X X Extracts X X X X ..... no clear cut demarcation in stock and investment of shares. 2. The Ld. CIT(A) has wrongly applied thedecision of Bombay High Court in the case of Gopal Purohit vs. JCIT, IT Appeal 1121 of 2009 on 6th January, 2010 as the facts are different in from the present case. In this case the assessee has declared his income from salary, business or profession capital gain (short term as well as long term) and income from "other sources". 2. The brief facts of the case are that the assessee filed return of income on 17.07.2007 declaring total income at Rs. 10,47,950/-. The return was processed u/s. 143(1) and later on it was selected for scrutiny and notice was issued u/s. 143(2) dated 22.07.2008 which was duly served upon the assessee. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the order of the Assessing Officer and submitted that the ld. CIT(A) has deleted the addition without distinguishing the case laws relied by the Assessing Officer. The assessee has done transactions in frequency. Receiving of dividend is not a matter for determination whether the assessee is holding the shares as investment or as business transactions. 4. The ld. AR, on the other hand, relied on the order of the ld. CIT(A) and submitted that the ld.CIT(A) has made reasoned order and it does not require any interference. The assessee was a teacher in DPS, Bokaro Steel City from 10.07.1987 to 08.07.2002. She had filed her returns regularly and does not have any business activities except small trading in derivatives. During the course of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the field formations . 3. Disputes, however, continue to exist on the application of these principles to the facts of an individual case since the taxpayers find it difficult to prove the intention in acquiring such shares/securities. In this background, while recognizing that no universal principal in absolute terms can be laid down to decide the character of income from sale of shares and securities (ie. whether the same is in the nature of capital gain or business income), CBDT realizing that major part of shares/securities transactions takes place in respect of the listed ones and with a view to reduce litigation and uncertainty in the matter, in partial modification to the aforesaid Circulars, further instructs that the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated that the above principles have been formulated with t he sale objective of reducing litigation and maintaining consistency in approach on the issue of treatment of income derived from transfer of shares and securities. All the relevant provisions of the Act shall continue to apply on the transactions involving transfer of shares and securities. (Rohit Garg) Deputy Secretary Government of India F.No.225/12/2016-ITA-II The ld. AR submitted that the assessee is investing her own funds since long back and generating income and filing the return of income regularly on the same pattern. In the identical facts and circumstances of the case, similar income returned by the assessee for the assessment year 2006-07 has been accepted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antial part of the income from gains consists of Long Term Capital Gains & hence it is clear that the sole intention of the appellant was to earn on investment. 7.3. I also notice that for earlier Assessment Years i.e 2005-06 & 2006-07, based on identical facts, the Assessing Officer has completed the assessment by accepting the claim of the assessee which is similar as in the present appeal. 7.4. I have gone through the detailed submission made by the appellant. There has been no change in the facts & circumstances of the case. Therefore, I hold that the appellant's transactions represent investment & therefore is to be taxed as capital gains. The Assessing Officer is, therefore, directed to treat the income under capital gains ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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