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TMI Blog2017 (3) TMI 1899X X X X Extracts X X X X X X X X Extracts X X X X ..... d the shares as investment and not as stock-in-trade. The CBDT Circular No. 6 of 2016 on 29.02.2016 has noted the dispute which consistently arose in respect to treatment of trading of shares as business or investment in shares. From a perusal of para 3(a) of the said circular, we note that the CBDT has given clear direction that where the assessee has treated the listed shares and securities as stock-in-trade, irrespective of the period of holding, the income arising from transaction of such shares/securities would be treated as its business income. The only condition expressed by the CBDT Circular is that once the assessee has taken a stand in an assessment year that he is trading in shares as business, or as investment, then he sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO had any reservation on this issue. CIT(A) also took note of the fact that there is not even a single word or reason in the assessment order to depart from the consistent view followed by the department and to change the view to treat the interest income as income from other sources there should be some change in facts or law, which is admittedly absent in this case. When the fact remains that the assessee is into the business of granting loans and advances, certainly the interest income of the assessee would be business income and the Ld. DR was unable to controvert the said fact before us. Therefore, we do not find any infirmity in the order of Ld. CIT(A) and we dismiss this ground of appeal of the revenue. - ITA No. 327/Kol/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earch team of the assessee company took a conscious decision against any trading in shares in the market till the general market sentiment gets improved. Fearing that there was every likelihood of incurring loss in trading of shares, so it was avoided anticipating substantial loss. It was also pointed out to the AO that the BSE Sensex has come down from 17480 to as low as 8047 by the end of the year. So it was pointed out to the AO that the company decided not to trade in shares for this particular reason and invested Rs.3406 lacs in various mutual funds and have redeemed Rs.3000 lacs during the year. It was brought to the knowledge of the AO that the company maintains a full fledged establishment for trading in shares which has research te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the AO in the previous assessment year done u/s. 143(3) of the Act and it has been taken as the opening stock in trade on 01.04.2008. When the AO has accepted in the previous assessment year that the scrips in question as stock-in-trade, the AO without valid reason cannot hold that the opening stock in trade has to be treated as investment. The Ld. AR drew our attention to the scrutiny assessment carried out by the AO u/s. 143(3) of the Act for the AY 2008-09 to support the said fact. The Ld. CIT(A) has taken note of the fact that the assessee has purchased and sold the trading shares in question and have routed the transaction through P L Account. The assessee had shown the shares as stock in trade and the AO u/s. 143(3) of the Act f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Circular of the CBDT, since the assessee has taken a stand that the shares are stock in trade then irrespective of the time of holding, the income arising from the transaction of such shares needs to be treated as business income. Therefore, the Ld. CIT(A) has rightly treated the same as business income and we do not find any infirmity in the order of the ld. CIT(A) and, therefore, we dismiss this ground of appeal of the revenue. 5. The next ground is against the action of the Ld. CIT(A) in holding the interest income as business income in place of income from other sources as held by the AO. 6. The brief facts of the case are that the assessee has received interest income of Rs.4,72,281/- in the instant assessment year and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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