9911796707
TMI Blog2019 (11) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as a business income. In the present case, though the assessee disputes the treatment given in the books of accounts but admittedly fact remains that the shares were shown as a part of stock in trade and therefore the Circular No.6/2016 dated 29.02.2016 issued by the CBDT cannot come to the rescue of the assessee. Is settled position of the law that the intention at the time of acquisition of shares is the determinative factor to decide whether the shares are held on stock in trade or investment account. In the present case, there is a prima facie evidence on record to show that the shares are held as stock in trade on purchase of shares was debited to P L A/c. This would prima facie prove the intention on the part of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In these circumstances, we condoned the delay of 28 days in filing of the appeal and proceed to dispose of the appeal on merits. 3. The assessee raised the following grounds of appeal: 1. For that the order of the Commissioner of Income-tax (Appeals) 11, Chennai is contrary to law, facts and circumstances of the case and is opposed to the principles of natural justice. 2. For that the appellant had diligently declared the Long-term Capital Gains on sale of Equity Shares held for more than one year as exempt income in the financials filed for the year covered under this Appeal for which he is entitled for the exemption U/s.10(38) of the Act. 3. For that the Appellant had su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s such other orders as this respectful authority may deem fit. 4. Briefly the facts of the case are that the assessee is an individual deriving income from investments. The return of income for the AY 2013- 14 was filed on 29.09.2013 disclosing income of ₹ 4,65,400/-. Against the said return of income, the assessment was completed by the AO vide order dated 29.03.2016 passed u/s.143(3) of the Act denying the exemption u/s.10(38) in respect of the long term capital gains by holding that the assessee is only a trader in the shares. 5. Being aggrieved by the action of the AO, an appeal was preferred before the Ld.CIT(A) who vide impugned order confirmed the action of the AO by holding that the assessee it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not as stock in trade. The Circular No.6/2016 dated 29.02.2016 specifically states that where the assessee itself opts to treat the shares as a stock in trade irrespective of the period of holding listed the shares, the income arising from the transfer of such shares could be treated as a business income. In the present case, though the assessee disputes the treatment given in the books of accounts but admittedly fact remains that the shares were shown as a part of stock in trade and therefore the Circular No.6/2016 dated 29.02.2016 issued by the CBDT cannot come to the rescue of the assessee. However, it is settled position of the law that the intention at the time of acquisition of shares is the determinative factor to decide whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
