DCIT, NEW DELHI vs. M/S. CHOWDRY ASSOCIATES, NEW DELHI

PDF · subscribers
ITA 3301/DEL/2014Status: DisposedITAT Delhi28 December 2017AY 2010-112 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the profit earned on the sale of shares should be treated as capital gains and not business income. This decision was based on previous rulings by the coordinate bench and the Delhi High Court in the assessee's own case.

What were the facts?

The assessee, a non-banking financial company, reported short-term capital gains from the disposal of shares. The Assessing Officer (AO) treated these gains as business income, rejecting the assessee's classification.

What were the issues?

Whether the profit arising from the disposal of shares by a non-banking financial company constitutes business income or short-term capital gains.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B ”: NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

For Appellant: Shri MP Rastogi, Adv
For Respondent: Shri Subhash Verma, Sr. DR, Shri MP Rastogi, Adv
Hearing: 11/10/2017Pronounced: 28/12/2017

O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the revenue against the order of the ld CIT(A)-VI, New Delhi dated 24.02.2014 for the Assessment Year.. 2010-11. 2. The revenue has raised the following grounds:- “

1. On the facts and in the circumstances of the case, the ld CIT(A) has erred in holding that disposal of shares at Rs. 11791104/- represented short term capital gain and not business income as held the AO.

2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

3. The brief facts of the case is that the assessee is a non-banking financial company trading in units of mutual funds and investment in shares and debentures. It filed its return of income on 30.09.2010 at Rs. 176323917/- which was revised on 28.03.2012 for Rs. 150990584/-. During the year assessee has earned short term capital gain of Rs. 11791104/- and long term capital gain of Rs. 450708239/- and the ld Assessing Officer asked that why the income from share should not be treated as business income. The assessee submitted a detailed reply vide letter dated 29.10.2012 which was rejected by the ld Assessing Officer relying on CBDT Circular No. 4/2007 dated 15.06.2007. Consequently, he held that short term capital gain of Rs. 11991104/- is business income of the assessee and consequently order u/s 143(3) was passed on 16.11.2012. Assessee preferred appeal before the ld CIT(A), who relying on the

Recent GST High Court judgments

Search GST case law →