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

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