ITAT confirmed CIT(A)’s order allowing claim for capital gains

1. Purnima B Pilinija derived income from house property, business, capital gain and income from other sources by way of interest.

2. She declared short term capital gain in share transactions amounting to Rs 37 lakhs.

3. During assessment proceedings, the assessee was asked to submit the details of share transactions along with copies of bills etc.

4. AO treated the short term capital gain of Rs 37 lakhs earned by the assessee on sale of shares as business income of the assessee instead of short term capital gain offered for taxation.

5. CIT(A) allowed assessee’s appeal.

On Revenue’s appeal, the ITAT held as under:

6. The facts and the circumstances in the case of the assessee are identical as in the case of Gopal Purohit(supra) and In our considered view , the assessee has rightly classified the investment made in shares whereby delivery based transactions are categorized as investment and income thereof is offered for taxation as capital gains while income arising from non-delivery based transactions are treated as speculative income.

7. We do not find any infirmity in the orders of the CIT(A) in directing the A.O. to treat the income of Rs. 37,73,360/- as short term capital gain in the case of delivery based transaction instead of business income.

8. Accordingly, we confirm the orders of the CIT(A) and dismiss the appeal of Revenue.

Case Reference - ACIT Vs Smt. Purnima B. Pilinja.

IN THE INCOME TAX APPELLATE TRIBUNAL "C"

BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND

SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER (BENCH, MUMBAI)

I.T.A. No.5734 /Mum/2012

(Assessment Year : 2009-10)