9911796707
TMI Blog2018 (12) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... term capital gains; ignoring the fact that the volume, frequency and motive of the Company clearly indicated that these transactions were for the purpose of profit and therefore, business income? (b) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the addition on account of foreign traveling; failing to note that neither before the AO nor before the Tribunal was the company in a position to give evidence of the nexus between this expenditure and the present or future business of the Company?" 2. The dispute between the Assessee and the Department is whether the sale of shares of one Adani Enterprises by the Assessee, would give rise to business income or short term capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age 5 of the paper book also shows that the assessee had used own funds and also interest free funds borrowed from the directors only for making investments, meaning thereby, no interest bearing funds have been borrowed for the purpose. The assessee has taken delivery of shares. In the books, it has treated the same as its investment. We notice that the AO has considered all the shares together to take the view that the assessee has indulged in trading in shares. However, the fact remains that the assessee itself has offered gains arising on shares held as trading stock as its business income. The assessee has claimed the gains arising on sale of Adani Enterprises Limited only as Short Term Capital Gain with the claim that it has held the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of M/s. Adani Enterprises Limited under the head "Income from Capital gains." From the material on record, and with the assistance of learned Counsel for the parties, we notice that in the earlier year also, Assessee had claimed capital gain out of its sale of shares. Same was accepted by the Assessing Officer. 3. Further, in the present case, the Tribunal noted that the dispute pertains only to one scrip namely the shares of M/s. Adani Enterprise Ltd., Assessee had purchased the shares in installments and after holding them for sometime, sold them also in installments. Thus, there were no instances of repetitive purchase and sale of shares. From the balance sheet, it could be gathered that the Assessee had used its own funds or inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n incurred on exploring new business opportunities and hence it is capital in nature and/or in the nature of preoperative expenses. There is no dispute with regard to the fact that the assessee is engage in the business of providing consultancy services in private placement of shares with Foreign Institutional Investors, financial institutes and is also providing advice on strategic investments and insurance sector. Besides the above, it also helps in arranging finance. Now the submission of the assessee is that it has incurred foreign travel expenses to expand its operations in various other places. Mere expansion of existing business activities, under no circumstance, would fall under the category of "New business venture". It is not the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
