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TMI Blog2018 (4) TMI 1926X X X X Extracts X X X X X X X X Extracts X X X X ..... s and computed the income of the assessee from house property and short term capital gain and denied the business loss as claimed by the assessee vide his order dated 20.02.2014 u/s 143(3) - Before the CIT(A) it was contended that the AO allowed expenditure that has been incurred by the assessee in A.Y.2009-10 and 2010-11 as deduction. AO without following the consistency that has been followed in the earlier years arbitrarily computed the income of the assessee on different heads as against the claim of the assessee. CIT(A) considering the submissions of the assessee along with the assessment orders and by following the earlier orders of first appellate authority for A.Y.2009-10 and 2010-11 allowed the business loss and computed the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading of shares and cannot be said there was no business due to the fact that there was lull in the share market and the income of the assessee is to be treated as business. The ld. AR submits that the issue involved in A.Y.2009-10 and in the year under consideration are identical and supported the order of CIT(A). 4. Heard the rival submissions and perused the records. During the course of assessment proceedings, it is noted that the assessee claimed business loss to an expenditure of Rs.1,27,82,705/-. The AO on examination of record in the profit and loss account of the assessee was of the opinion that the assessee has no business during the year and the major income as earned by the assessee was from house property and service char ..... 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 stockin-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 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per 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. In view of the same we do not find any infirmity in the order of CIT(A) and accordingly the appeal is dismissed. Ground nos. 1 and 2 raised by the revenue are dismissed. 6. In the result the appeal of the revenue is dismissed. Order pronounced in the open Court on 13.04.2018. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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