9911796707
TMI Blog2024 (11) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... er examining the documents on record in the instant case, we have already held that the assessee was holding shares under investment portfolio. Accordingly, the assessee rightly offered gain on sale of shares as Short Term Capital Gains. The action of the AO in treating gain on sale of shares as, Business Income is unwarranted and without any basis. The AO completely disregarded the intention of assessee and the accounting treatment. Hon'ble Jurisdictional High Court in the case of CIT vs. Rohit Anand [ 2010 (8) TMI 232 - DELHI HIGH COURT] ; CIT vs. Ess Jay Enterprises P Ltd. [ 2007 (8) TMI 709 - DELHI HIGH COURT] ; CIT vs. Gulmohor Finance Ltd.[ 2008 (2) TMI 867 - DELHI HIGH COURT] in similar set of facts has upheld the order of Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the beginning was to hold said shares as investments. Accordingly, the assessee had shown shares as investments in its audited Balance Sheet. He contended that there is no bar in assessing having two separate portfolios; one comprising of stock in trade treating shares as trading asset and the second portfolio in the nature of Investments. He referred to CBDT Circular No. 4 of 2007 dated 15.06.2007, to contend that the Board has accepted that it is possible that the tax payer has two portfolios i.e. an investment portfolio comprising of securities which are treated as capital assets and a trading portfolio comprising of stock in trade treating the securities as trading assets and the assessee can have income under both heads i.e. capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to take note of subsequent supplementary Circular No. 4 of 2007 (supra), wherein the Board after considering various judicial decisions has updated the previous instruction. For the sake of completeness, the relevant extract of the supplementary instructions (supra) are reproduced herein below: 10. CBDT also wishes to emphasise that it is possible for a tax payer to have two portfolios, i.e., an investment portfolio comprising of securities which are to be treated as capital assets and a trading portfolio comprising of stock-in-trade which are to be treated as trading assets. Where an assessee has two portfolios, the assessee may have income under both heads i.e., capital gains as well as business income. 11. Assessing officers are advi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
