BANG EQUITY BROKING PRIVATE LIMITED,MUMBAI vs. ACIT-CIRCLE 4(1)(1), MUMBAI

ITA 7504/MUM/2025Status: DisposedITAT Mumbai16 February 2026AY 2015-16Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the capital gains on sale of BSE shares should be treated as long-term capital gains. The cost of acquisition should be the original cost of the membership card as per Section 55(2)(ab), and the period of holding should be reckoned from the date of original membership.

What were the facts?

The assessee treated capital gains on sale of BSE shares as long-term capital gains, using the written down value (WDV) of its erstwhile BSE membership card as the cost of acquisition. The Assessing Officer (AO) treated it as short-term capital gains and disallowed the cost of acquisition, which was confirmed by the Commissioner (Appeals).

What were the issues?

Whether capital gains on sale of BSE shares post-demutualisation are long-term or short-term, and what is the correct cost of acquisition and period of holding for such gains.

Which sections of the Income-tax Act were involved?

Section 55(2)(ab),Section 2(42A),Section 50,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI

For Appellant: Shri Anant N. Pai, CA
For Respondent: Shri Leyaqat Ali Aafaqui (SR DR)
Hearing: 29/01/2026Pronounced: 16/02/2026

Per: Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity ‘the ld. CIT(A)], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for assessment year 2015-16, date of order 22.10.2025. The impugned order emanated from the order of the Ld. Deputy Commissioner of Income Tax 4(1)(1), Mumbai (for brevity the ‘Ld. AO’) order passed under section 143(3) of the Act date of order 26.12.2017. 2 Bang Equity Broking Pvt. Ltd.

2.

The assessee has taken following grounds: Ground no. 1: On facts and circumst

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 2(42A)

All 193 judgments and leading authorities on Section 2(42A) →

Recent GST High Court judgments

Search GST case law →