ITAT allowed STCG on share transactions as assessee was an investor
ITAT allowed STCG on share transactions as assessee was an investor
Assessee individual derived income from salary and business, and declared total income at Rs 1,93,12,540. He disclosed STCG on share transactions. AO held assessee was engaged in frequent voluminous transactions of shares, and thus treated STCG as business income. CIT(A) deleted the addition. ITAT allowed STCG as it held that assessee was an investor in shares and securities as he had clearly demarcated the transactions in his books of account.-501660
1. Assessee individual derived income from salary, income from business.
2. He declared total income at Rs.1,93,12,540.
3. Assessee had disclosed short term capital gain, business loss and speculation income, and claimed exemption of dividend income and a gift.
4. AO issued show cause notice as to why STCG should not be treated as income from business.
5. As assessee was engaged in frequent voluminous transactions of shares, AO treated the STCG as business income.
6. CIT(A) deleted the addition by accepting the contention of assessee by treating the profits from sale of shares as STCG.
On appeal, the ITAT held as under:
7. We further find that co-ordinate bench Mumbai has adjudicated similar issue wherein assessee has shown income from long term capital gain and short term capital gain, speculation profit F&O trading and income from profession and held in favour of assessee
8. Respectfully following and relying on the decision of co-ordinate bench in the light of facts discussed in the case of assessee we are of the view that it cannot be said that assessee was only a trader in shares because assessee has clearly demarcated the transactions in his books of account, which proves that he was an investor in shares and securities.
9. However, shares and securities held upto 31.3.2007 were sold during financial year 2007-08 and income earned from sale of such investments were shown as short term and long term capital gain.
10. We therefore, hold that the short term capital gain of Rs. 2,04,87,755/- should be accepted and there is no reason to interfere with the order of ld. CIT(A) and we uphold the same.
Case Reference - Income-tax Officer Vs. Shri Tejas J. Amin.
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD '' C " BENCH - AHMEDABAD
Before Shri Rajpal Yadav, JM, & Shri Manish Borad, AM.
ITA No. 168/Ahd/2012
(Asst. Year: 2008-09)
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