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TMI Blog2018 (5) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... ciples laid down in the said circulars and the individual tax buyers find it difficult to prove the intention in acquiring the shares and securities in question. There are no universal principles which could be applied uniformly. This exclusion clause would apply where the genuineness of transaction itself is questionable. In cases such as bogus claims of long term capital gain or short term capital loss or sham transactions, the instructions of CBDT would not apply. It is not even the case of the Revenue that the transactions in question were sham. The observations of the Assessing Officer and CIT (Appeals) about the rigging of the shares could be at best seem to be more of suspicion than establishing the necessary conclusions. Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... controversy between the assessee and department regarding the treatment to be given to the income generated through sale of shares, certain directives have been issued. 4. Learned counsel for the Revenue mainly stressed on two aspects. Firstly, that the Tribunal did not give proper consideration to the facts on record which were minutely examined by the Assessing Officer and the CIT (Appeals) and secondly, that the circular would not apply looking to the exclusion clause contained in para 4 thereof. 5. The materials on record would suggest that the shares in question were of one Vishal Exports Overseas Ltd. [ VEOL for short] which was a limited company. The assessee had been strenuously arguing that it was not possible to rig the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar Assessment year, shall remain applicable in subsequent Assessment year also and the taxpayers shall not be allowed to adopt a different/contrary stand in this regard in subsequent years. c) In all other cases, the nature of transaction (i.e. whether the same is in the nature of capital gain or business income) shall continue to be decided keeping in view the aforesaid Circulars issued by the CBDT. 7. These directions thus essentially recognize that the declaration made by an assessee with respect to its intention in buying and selling shares would be accepted. He was of course not allowed to change his position from time to time. Para 4 of the circular made certain exceptions and provided as under: It is however, clar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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