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TMI Blog2024 (6) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... g-term or short-term depending upon the period of holding. CBDT has also directed in the said Circular that for listed shares and securities held for a period of more than 12 months, the stand once taken by the assessee in a particular year shall remain applicable in subsequent assessment years also. Therefore, the principle of consistency was acknowledged by the CBDT in this Circular. Further this Circular was issued with a view to reduce litigation and uncertainty. Therefore, the principle of consistency has to be followed in the case of shares held for less than 12 months as well. The assessee had shown the sale of shares held for less than 12 months as STCG in the past year which was accepted by the Department in the scrutiny assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time of or before the hearing of the appeal. 4. Shri Tushar Hemani, Ld. Senior Advocate appearing for the assessee submitted that the assessee had sold certain shares allotted in IPO process which had resulted into capital gain. This gain was disclosed as STCG in the return of income but the A.O. had treated the STCG as business income which was upheld by the Ld. CIT(A). He submitted that the shares were held as 'Investment' by the assessee and not as 'stock-in-trade'. Further all the transactions were delivery-based transactions. Though the assessee had also derived gain on certain "intra-day activity", such gain was not shown as STCG. The Ld. A.R. pointed out that the assessee was consistently showing income derived on sale of sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce sheet of the assessee that the shares were disclosed as 'investment'. It is also found that the shares were allotted to the assessee in IPO and after allotment the shares were sold mostly within a period of one month. As the holding period of all the shares was less than 12 months, the gain arising on sale of these shares was disclosed as STCG by the assessee. In the preceding A.Y. 2015-16 also, the assessee had disclosed STCG of Rs. 23,42,561/- on sale of such shares which was accepted by the Department in the order u/s 143(3) of the Act dated 28.11.2017. In the current year, however, the Department has taken a different view and treated this gain as business income. 7. The contention of the Revenue is that the intention of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curities held for a period of more than 12 months, the stand once taken by the assessee in a particular year shall remain applicable in subsequent assessment years also. Therefore, the principle of consistency was acknowledged by the CBDT in this Circular. Further this Circular was issued with a view to reduce litigation and uncertainty. Therefore, the principle of consistency has to be followed in the case of shares held for less than 12 months as well. The assessee had shown the sale of shares held for less than 12 months as STCG in the past year which was accepted by the Department in the scrutiny assessment. As the facts were identical, the Revenue was not correct in changing its stand without any valid reason to treat the STCG disclose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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