SURJIT SINGH BAGGA HUF,MUMBAI vs. ITO 17(1)(1), MUMBAI

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ITA 403/MUM/2016Status: DisposedITAT Mumbai18 November 2016AY 2006-073 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CBDT Circular No. 6/2016 is significant in determining the head of income for share transactions based on book entries. Revenue authorities should examine the circular and the assessee's books of accounts before arbitrarily changing the head of income.

What were the facts?

The assessee's appeal concerns the taxation of earnings from the sale of shares, which the AO and CIT(A) treated as income from other sources. The assessee argued that the AO's decision was based on a retracted statement and that their claim in the return of income should be accepted.

What were the issues?

Whether the AO/CIT(A) erred in taxing share sale earnings under 'income from other sources' without considering the assessee's book entries and CBDT Circular No. 6/2016.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned, but relates to head of income determination

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI D. KARUNAKARA RAO & SHRI C.N. PRASAD

For Appellant: Shri Hari S. Raheja
For Respondent: Shri Akhilendra Yadav, DR
Hearing: 09.11.2016Pronounced: 18.11.2016

सुनवाई की तायीख / Date of Hearing : 09.11.2016 घोषणा की तायीख /Date of Pronouncement : 18.11.2016 आदेश / O R D E R

PER D. KARUNAKARA RAO, AM:

1.

This appeal filed by the assessee on 28.1.2016 is against the order of the CIT (A)-32, Mumbai dated 20.11.2015 for the assessment year 2006-07.

2.

In this appeal, assessee raised five grounds in toto and they revolve around the solitary issue relates to the decision of the AO / CIT (A) in taxing the earning on sale of shares of Talent Infoway Ltd involving some disputes under the head income from other sources. On this issue, Ld Counsel for the assessee fairly submitted that the decision of the AO is linked to the statement of Shri Mukesh Choksey, which was subsequently retracted and therefore, the claim of the assessee should be accepted as claimed in the return of income without any changes. However, bringing our attention to the contents of CBDT Circular no.6/2016, dated 29.2.2016, Ld Counsel for the assessee submitted that the claim of the assessee in the books of accounts assumes significance in the light of the said Circular.

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