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TMI Blog2018 (4) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... 26.12.2008 for the Assessment Year 2006-07. 2. The only issue to be decided in this appeal is as to whether the ld CITA was justified in treating the income from sale of shares as Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) as the case may be , in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee filed its return of income for the Asst Year 2006-07 on 30.11.2006 declaring total income of Rs. 79,34,220/-. The assessee is an investment company dealing in carpets , garments, stocks and shares. The ld AO observed that the assessee has shown considerable income from profit on sale of investment which the assessee has shown as LTCG and STCG. The ld AO observed that the same has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly he concluded that the motive of assessee while buying and selling these shares were only to earn profits. Hence based on frequency of transactions and minimum period of holding , he concluded that the profits on sale of shares are to be assessed only as business income in the sum of Rs. 1,63,88,559/-. 4. The ld CITA treated the gains arising on sale of shares as LTCG and STCG depending upon the period of holding as against business income treated by the ld AO, by placing reliance on the decision of this tribunal in assessee's own case for the Asst Year 2005-06 in ITA No. 783/Kol/2009 dated 1.7.2015. The ld CITA however held that if there was any incidence of conversion of stock in trade into investment, the same is to be treated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portfolio in its balance sheet. The assessee has been consistently showing these shares and mutual funds under Investments in its balance sheet. We find that the issue under dispute is covered in favour of the assessee in Asst Year 2005-06 in ITA No. 783/Kol/2009 dated 1.7.2015 wherein it was held that:- "We have gone through the ledger accounts of the assessee for the assessment year 2005-06 under consideration and noticed separate ledger accounts in respect of conversion of stock-in-trade into investment. By converting the stock-in-trade into investment, it does not alter the character, nature and intention of that particular transaction especially in the context of capital gain versus business income. By bringing in stock-in-trade unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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