AO held incorrect as profit earned by assessee not taxable as business income.
Dec. 30, 2015
Assessee sold shares of 'T' Ltd. to foreign Co.Income arising from sale of shares was declared as short term capital gain. AO opined that profit earned by assessee was taxable as business income. CIT(A) confirmed order of AO. On appeal ITAT held, assessee made investm't in shares with intention to earn dividend income on appreciation of price of shares. Therefore, it can't be said that assessee was doing business. Thus, AO action held incorrect.-00…
Repayment of loan by person giving security is allowed as a business expense u/…
Dec. 24, 2015
'E' took secured loan, where assessee's director gave security. E defaulted. So, assessee had to pay back the loan. Assessee claimed the repayment as deduction u/s 37. AO disallowed deduct'n on ground that payment was not in connection with business of assessee. On appeal,CIT(A), ITAT, HC allowed the deduction. HC held, it can't be construed that there was no 'commercial expediency' in payment. Appellate rightly held, exp. falls within Sec. 37.-000…
Gains made on sale of investments by a share trader are capital gains and shoul…
Nov. 26, 2015
Assessee invested in shares & securities. In return of assessee disclosed certain short-term capital gains on account of sale of shares. AO held, sale & purchase was not in nature of investm't & held it as business income & levied penalty. On appeal CIT(A) deleted penalty, as capital gains particulars were duly disclosed in return as well as in balance sheet as stock-in-trade for business. On appeal, ITAT & HC upheld CIT(A) decision.