CIT v. Express Securities Pvt. Ltd.

364 ITR 488High Court2014#8435 most cited

What is CIT v. Express Securities Pvt. Ltd. authority for?

A company can convert its stock-in-trade to an investment portfolio, and shares held in such an investment portfolio, if sold after the period of holding for long-term capital gains, are eligible for exemption under Section 10(38).

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Express Securities Pvt. Ltd. · Section 10(38) · long term capital gain · exemption · investment portfolio · stock in trade · capital gains · section 143 · previous year · transfer

Read the full judgment

Issues it is cited on

period of holdingsection 10(38)short term capital gainlong term capital gainslong term capital gaincommissioner (appeals)section 10previous yeartransfersection 143personcompany

Judgments citing CIT v. Express Securities Pvt. Ltd.

Income Tax Officer, Ward-11(1), Delhi vs. Hkt Corporation Pvt Ltd, Delhi

The appeal are dismissed

ITA 1036/DEL/2024[2020-21]Status: DisposedITAT Delhi09 Jul 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 143(3)

…ee is not entitled to convert its inventory/stock in trade to its investment account, it is hardly found to be res integra in light of hon'ble jurisdictional 17 Page ITA No. 1036/Del/2024 high court's decision in CIT Vs. Express Securities Pvt. Ltd. (2014) 364 ITR 488 (Del) as follows: “2. The assessee is a company. In the return for the year in question, it had declared long-term capital gain of Rs.3,34,65,931/- and the said gain was claimed as exempt under Section 10(38) of the Income Tax Act, 1961 (Act, for short). The respondent-assessee had claimed before the Assessing Officer that they were maintaining…

Arunima Adcon Services Pvt Ltd, New Delhi vs. ACIT, Circle- 20(2), New Delhi

In the result the appeals of the assessee in ITA No

ITA 1320/DEL/2020[2015-16]Status: DisposedITAT Delhi25 Sept 2023AY 2015-16

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Gaurav Jain, AdvFor Respondent: Shri Vivek Vardhan, Sr. DR

…nted out that profits on sale of shares in subsequent years have been accepted as capital gains. This is also in line with the aforementioned CBDT Circular. 21. On similar set of facts, the Hon'ble Delhi High Court in the case of Express Securities Pvt Ltd 364 ITR 488 on the following facts held as under: Facts “The assessee is a company. In the return for the year in question, it had declared long-term capital gain of {- Rs. 3,34,65,931/- and the said gain was claimed as exempt under Section 10(38) of the Income Tax Act, 1961 (Act, for short). The respondent-assessee had claimed before the Assessing Officer…

DCIT, Circle- 20(2), New Delhi vs. Radharani Ornaments Pvt. Ltd., New Delhi

In the result the appeals of the assessee in ITA No

ITA 1166/DEL/2020[2015-16]Status: DisposedITAT Delhi25 Sept 2023AY 2015-16

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Gaurav Jain, AdvFor Respondent: Shri Vivek Vardhan, Sr. DR

…nted out that profits on sale of shares in subsequent years have been accepted as capital gains. This is also in line with the aforementioned CBDT Circular. 21. On similar set of facts, the Hon'ble Delhi High Court in the case of Express Securities Pvt Ltd 364 ITR 488 on the following facts held as under: Facts “The assessee is a company. In the return for the year in question, it had declared long-term capital gain of {- Rs. 3,34,65,931/- and the said gain was claimed as exempt under Section 10(38) of the Income Tax Act, 1961 (Act, for short). The respondent-assessee had claimed before the Assessing Officer…

ACIT, Circle- 26(2), Delhi vs. Vic Enterprises Pvt. Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 7103/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Jan 2023AY 2014-15

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2014-15

For Appellant: Shri M.P. Rastogi, CAFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 10(38)Section 143(1)Section 143(3)Section 2(14)

…major component is shares of Dawar India Ltd. There is no prohibition in law to convert stock in trade to investment account. In this regard, he placed reliance on the decision of Hon'ble High Court of Delhi in the case of CIT vs. Express Security Pvt. Ltd. - 364 ITR 488 (Del.). The Learned AR submitted further that the contents of memorandum cannot be a sole basis but entirety of facts relating to the transaction is to be examined to find out the nature of the transaction as to whether it is investment or trade. The Learned AR submitted that STT was very much paid on the said transaction and referred page No. 23…

ACIT, New Delhi vs. M/S. Vic Enterprises Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 1893/DEL/2017[2011-12]Status: DisposedITAT Delhi07 Feb 2020AY 2011-12

Bench: Sh. N. K. Choudharydr. B. R. R. Kumarita No. 1893/Del/2017 : Asstt. Year : 2011-12 Assistant Commissioner Of Vs M/S Vic Enterprises Pvt. Ltd., 4Th Floor, Punjabi Bhawan, 10, Income Tax, Circle-26(1), New Delhi-110002 Rouse Avenue, New Delhi (Appellant) (Respondent) Pan No. Aaacv0132B Assessee By : Sh. M. P. Rastogi, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 06.02.2020 Date Of Pronouncement: 07.02.2020

For Appellant: Sh. M. P. Rastogi, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 10(38)Section 143(3)Section 14A

…major component is shares of Dawar India Ltd. There is no prohibition in law to convert stock in trade to investment account. In this regard, he placed reliance on the decision of Hon'ble High Court of Delhi in the case of CIT vs. Express Security Pvt. Ltd. - 364 ITR 488 (Del.). The Learned AR submitted further that the contents of memorandum cannot be a sole basis but entirety of facts relating to the transaction is to be examined to find out the nature of the transaction as to whether it is investment or trade. The Learned AR submitted that STT was very much paid on the said transaction and referred page No. 23…

M/S. Loknath Saraf Securities Pvt. Ltd., Kolkata vs. ACIT, Circle - 6, Kolkata

In the result, the appeal of the revenue is dismissed as not maintainable and the appeal of the assessee is partly allowed

ITA 418/KOL/2011[2006-07]Status: DisposedITAT Kolkata03 Aug 2016AY 2006-07

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: S/Shri Ashwani Kumar, C.A & A.K. Jain, ARFor Respondent: Shri Aroop Kumar, CIT
Section 143(3)

…itten submissions filed by the assessee before the ld CITA which are enclosed in pages 1 to 24 of the Paper Book. Apart from that, he placed reliance on the following decisions in support of his arguments:- a) CIT vs Express Securities Ltd reported in (2014) 364 ITR 488 (Del) 6 ITA No.300-418/Kol/2011, AY 2006-07 Lokenath Saraf Securities Ltd. b) ACIT vs R Raman (HUF) reported in (2011) 14 taxmann.com 76 (Chennai Tribunal) dated 5.8.2011 c) CIT vs Jubilant Securities P Ltd in ITA No. 588 of 2011 dated 31.3.2011 rendered by Hon’ble Delhi High Court d) Chaturanan Industries Ltd vs ACIT in ITA No. 4793/Del/2010 fo…

DCIT, Circle - 6 Kolkata, Kolkata vs. Lokenath Saraf Securities Ltd., Kolkata

In the result, the appeal of the revenue is dismissed as not maintainable and the appeal of the assessee is partly allowed

ITA 300/KOL/2011[2006-07]Status: DisposedITAT Kolkata03 Aug 2016AY 2006-07

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: S/Shri Ashwani Kumar, C.A & A.K. Jain, ARFor Respondent: Shri Aroop Kumar, CIT
Section 143(3)

…itten submissions filed by the assessee before the ld CITA which are enclosed in pages 1 to 24 of the Paper Book. Apart from that, he placed reliance on the following decisions in support of his arguments:- a) CIT vs Express Securities Ltd reported in (2014) 364 ITR 488 (Del) 6 ITA No.300-418/Kol/2011, AY 2006-07 Lokenath Saraf Securities Ltd. b) ACIT vs R Raman (HUF) reported in (2011) 14 taxmann.com 76 (Chennai Tribunal) dated 5.8.2011 c) CIT vs Jubilant Securities P Ltd in ITA No. 588 of 2011 dated 31.3.2011 rendered by Hon’ble Delhi High Court d) Chaturanan Industries Ltd vs ACIT in ITA No. 4793/Del/2010 fo…

Ashok Apparels P. Ltd., Mumbai vs. D.C.I.T. Cen. Cir.47, Mumbai

In the result, grounds No

ITA 7303/MUM/2012[2009-10]Status: DisposedITAT Mumbai29 Jul 2016AY 2009-10

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…siness or profession' and 'Capital gains' in AY 2005- 06 and 2006-07 for which orders u/s 143(3) and 153A r.w.s 143(3) respectively have been passed. He, further relied upon the judgment of Delhi High Court in the case of CIT vs. Express Securities Pvt. Ltd. (364 ITR 488) wherein it was concluded that once the shares are held as investment by the assessee, then resultant gain / loss should be assessed as capital gain although the scrip has been held as stock in trade prior to such conversion. He also relied upon the decision of Hon’ble Bombay High Court in the case of CIT vs. Yatish Trading Co. Pvt. Ltd, reported…

Ashok Apparels P.Ltd, Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, grounds No

ITA 3563/MUM/2012[2008-09]Status: DisposedITAT Mumbai29 Jul 2016AY 2008-09

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…siness or profession' and 'Capital gains' in AY 2005- 06 and 2006-07 for which orders u/s 143(3) and 153A r.w.s 143(3) respectively have been passed. He, further relied upon the judgment of Delhi High Court in the case of CIT vs. Express Securities Pvt. Ltd. (364 ITR 488) wherein it was concluded that once the shares are held as investment by the assessee, then resultant gain / loss should be assessed as capital gain although the scrip has been held as stock in trade prior to such conversion. He also relied upon the decision of Hon’ble Bombay High Court in the case of CIT vs. Yatish Trading Co. Pvt. Ltd, reported…

Ashok Apparels P.Ltd, Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, grounds No

ITA 3562/MUM/2012[2007-08]Status: DisposedITAT Mumbai29 Jul 2016AY 2007-08

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…siness or profession' and 'Capital gains' in AY 2005- 06 and 2006-07 for which orders u/s 143(3) and 153A r.w.s 143(3) respectively have been passed. He, further relied upon the judgment of Delhi High Court in the case of CIT vs. Express Securities Pvt. Ltd. (364 ITR 488) wherein it was concluded that once the shares are held as investment by the assessee, then resultant gain / loss should be assessed as capital gain although the scrip has been held as stock in trade prior to such conversion. He also relied upon the decision of Hon’ble Bombay High Court in the case of CIT vs. Yatish Trading Co. Pvt. Ltd, reported…

Ashok Apparels P.Ltd, Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, grounds No

ITA 3561/MUM/2012[2006-07]Status: DisposedITAT Mumbai29 Jul 2016AY 2006-07

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…siness or profession' and 'Capital gains' in AY 2005- 06 and 2006-07 for which orders u/s 143(3) and 153A r.w.s 143(3) respectively have been passed. He, further relied upon the judgment of Delhi High Court in the case of CIT vs. Express Securities Pvt. Ltd. (364 ITR 488) wherein it was concluded that once the shares are held as investment by the assessee, then resultant gain / loss should be assessed as capital gain although the scrip has been held as stock in trade prior to such conversion. He also relied upon the decision of Hon’ble Bombay High Court in the case of CIT vs. Yatish Trading Co. Pvt. Ltd, reported…

DCIT, New Delhi vs. M/S Vic Enterprises Pvt. Ltd., New Delhi

ITA 2863/DEL/2010[2006-07]Status: DisposedITAT Delhi22 Dec 2015AY 2006-07

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2006-07 Deputy Cit, Vs. Vic Enterprises Pvt. Ltd., 4Th Floor, Punjabi Bhawan, Circle-17(1), New Delhi. 10-Rouse Avenue, New Delhi. (Pan: Aaacv0132B) (Appellant) (Respondent) Assessment Year: 2008-09 Asstt. Cit, Vs. Vic Enterprises Pvt. Ltd., 4Th Floor, Punjabi Bhawan, Circle-17(1), New Delhi. 10-Rouse Avenue, New Delhi. (Pan: Aaacv0132B) (Appellant) (Respondent)

For Appellant: Shri MP Rastogi, AdvFor Respondent: Shri Sumit Chandra Sharma, CIT- DR
Section 111ASection 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “H” NEW DELHI) BEFORE SHRI I.C. SUDHIR AND SHRI L.P. SAHU Assessment Year: 2006-07 Deputy CIT, vs. VIC Enterprises Pvt. Ltd., 4th Floor, Punjabi Bhawan, Circle-17(1), New Delhi. 10-Rouse Avenue, New Delhi. (PAN: AAACV0132B) (Appellant) (Respondent) Assessment Year: 2008-09 Asstt. CIT, vs. VIC Enterprises Pvt. Ltd., 4th Floor, Punjabi Bhawan, Circle-17(1), New Delhi. 10-Rouse Avenue, New Delhi. (PAN: AAACV0132B) (Appellant) (Respondent) ITA No.3635/Del/2011 Asst.Yrs: 2006-07 & 2010-11 VIC Enterprises Pvt. Ltd., Vs. Additional CIT, 4th Floor, Punjabi Bhawan, Ci…

Commissioner of Income Tax (C(I)) vs. M/S Chaturanan Industries Ltd

ITA/197/2015HC Delhi15 Dec 2015

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…ised from the sale of the shares in question instead of the entire sale proceeds. Thus, the additionmade by AO was reduced from Rs.69,54,609/- to Rs.49,88,809/-. 7. The ITAT, following the decision of this Court in CIT v. Express Securities (P.) Ltd.'. [2014] 364 ITR 488 (Delhi) held that it was open for an Assessee to convert its holding from stock-in-trade to investment and such conversion could not be rejected only on the ground that long term capital gains from sale of investments were not taxable by virtue of Section 10(38) of the Act. The ITAT further observed that it would be open to reject the conversion…

CIT v. Express Securities Pvt. Ltd. (364 ITR 488) — Cited in 13 Judgments | BharatTax