CIT v. Motilal Hirabhai Spg. And Wvg. Co. Ltd.

113 ITR 173High Court1978#2323 most cited

What is CIT v. Motilal Hirabhai Spg. And Wvg. Co. Ltd. authority for?

The determination of whether share transactions constitute a business activity or an investment depends on the facts of the case. Factors like volume, frequency, and regularity indicate business activity, irrespective of how such transactions are presented in accounts.

49

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. Motilal Hirabhai Spg. And Wvg. Co. Ltd. · 113 ITR 173 · business income from share transactions · investment vs business · volume frequency regularity · Section 2(13) · Section 2(14) · income classification

Sections most often in play

Section 115BBESection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 2(13)Section 2(14)Section 24(a)

Issues it is cited on

businessdocumentinterest

Judgments citing CIT v. Motilal Hirabhai Spg. And Wvg. Co. Ltd.

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 439/LKW/2019[2016-17]Status: DisposedITAT Lucknow10 Mar 2022AY 2016-17

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…tion and labour of a person normally with the object of making profit [JesselM.R. In smith V. Anderson, (1880) 15 Ch D 247, 258; State of Andhra Pradesh v. H. Abdul Bakshi& Bros, (1964) 15 STC 644, 547 (SC); CIT v. MotilalHirabaiSpng.And Wvg. Co. Ltd., (1978) 113 ITR 173 (GUJ); Bharat Development (P.)Ltd. V. CIT, (1982) 133 ITR 471,474/ (Del)]. The word means almost anything which is an occupation or duty requiring attention as distinguished from sport or pleasure and is used in the sense of an occupation continuously carried on for the purpose of profit [Rogers Pyatt Shellac & Co. v. Secretary of State, AIR I.T…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 186/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…tion and labour of a person normally with the object of making profit [JesselM.R. In smith V. Anderson, (1880) 15 Ch D 247, 258; State of Andhra Pradesh v. H. Abdul Bakshi& Bros, (1964) 15 STC 644, 547 (SC); CIT v. MotilalHirabaiSpng.And Wvg. Co. Ltd., (1978) 113 ITR 173 (GUJ); Bharat Development (P.)Ltd. V. CIT, (1982) 133 ITR 471,474/ (Del)]. The word means almost anything which is an occupation or duty requiring attention as distinguished from sport or pleasure and is used in the sense of an occupation continuously carried on for the purpose of profit [Rogers Pyatt Shellac & Co. v. Secretary of State, AIR I.T…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 185/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…tion and labour of a person normally with the object of making profit [JesselM.R. In smith V. Anderson, (1880) 15 Ch D 247, 258; State of Andhra Pradesh v. H. Abdul Bakshi& Bros, (1964) 15 STC 644, 547 (SC); CIT v. MotilalHirabaiSpng.And Wvg. Co. Ltd., (1978) 113 ITR 173 (GUJ); Bharat Development (P.)Ltd. V. CIT, (1982) 133 ITR 471,474/ (Del)]. The word means almost anything which is an occupation or duty requiring attention as distinguished from sport or pleasure and is used in the sense of an occupation continuously carried on for the purpose of profit [Rogers Pyatt Shellac & Co. v. Secretary of State, AIR I.T…

Lucknow Evelopment Authority, Lucknow vs. I.T.O., Lucknow

In the result, all the appeals are partly allowed

ITA 164/LKW/2019[2015-16]Status: DisposedITAT Lucknow10 Mar 2022AY 2015-16

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…tion and labour of a person normally with the object of making profit [JesselM.R. In smith V. Anderson, (1880) 15 Ch D 247, 258; State of Andhra Pradesh v. H. Abdul Bakshi& Bros, (1964) 15 STC 644, 547 (SC); CIT v. MotilalHirabaiSpng.And Wvg. Co. Ltd., (1978) 113 ITR 173 (GUJ); Bharat Development (P.)Ltd. V. CIT, (1982) 133 ITR 471,474/ (Del)]. The word means almost anything which is an occupation or duty requiring attention as distinguished from sport or pleasure and is used in the sense of an occupation continuously carried on for the purpose of profit [Rogers Pyatt Shellac & Co. v. Secretary of State, AIR I.T…

Lucknow Development Authority, Lucknow vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result, all the appeals are partly allowed

ITA 163/LKW/2019[2014-15]Status: DisposedITAT Lucknow10 Mar 2022AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…tion and labour of a person normally with the object of making profit [JesselM.R. In smith V. Anderson, (1880) 15 Ch D 247, 258; State of Andhra Pradesh v. H. Abdul Bakshi& Bros, (1964) 15 STC 644, 547 (SC); CIT v. MotilalHirabaiSpng.And Wvg. Co. Ltd., (1978) 113 ITR 173 (GUJ); Bharat Development (P.)Ltd. V. CIT, (1982) 133 ITR 471,474/ (Del)]. The word means almost anything which is an occupation or duty requiring attention as distinguished from sport or pleasure and is used in the sense of an occupation continuously carried on for the purpose of profit [Rogers Pyatt Shellac & Co. v. Secretary of State, AIR I.T…

ACIT - 24(1), Mumbai vs. Dipak Kanayalal Shah, Mumbai

In the result, appeal filed by the revenue for assessment year 2013-2014

ITA 3572/MUM/2018[2013-14]Status: DisposedITAT Mumbai29 Aug 2019AY 2013-14

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2013-14 The Assistant Commissioner Of Shri Dipak Kanayalal Shah, Income Tax-24, 31-B, 1St Floor, Laxmi Estate, Room No. 604, Piramal Azad Road, Andheri (East), Chambers, Lalbaug, Parel, Vs. Mumbai - 400069 Mumbai - 400012 Pan: Aveps4654B (Appellant) (Respondent) Revenue By : Shri D.G. Pansari (Dr) Assessee By : Shri M.P. Lohia (Ar) Date Of Hearing: 06/06/2019 Date Of Pronouncement: 29/08/2019

For Appellant: Shri M.P. Lohia (AR)For Respondent: Shri D.G. Pansari (DR)
Section 143

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “D”, MUMBAI BEFORE SHRI RAJESH KUMAR (AM) AND SHRI RAM LAL NEGI (JM) Assessment Year: 2013-14 The Assistant Commissioner of Shri Dipak Kanayalal Shah, Income Tax-24, 31-B, 1st Floor, Laxmi Estate, Room No. 604, Piramal Azad Road, Andheri (East), Chambers, Lalbaug, Parel, Vs. Mumbai - 400069 Mumbai - 400012 PAN: AVEPS4654B (Appellant) (Respondent) Revenue by : Shri D.G. Pansari (DR) Assessee by : Shri M.P. Lohia (AR) Date of Hearing: 06/06/2019 Date of Pronouncement: 29/08/2019 O R D E R PER RAM LAL NEGI, JM This appeal has been filed by the revenue against t…

Asst CIT 24(1), Mumbai vs. Dipak K. Shah, Mumbai

In the result, appeal by the Revenue and Cross Objection by the assessee stand dismissed

ITA 5135/MUM/2017[2007-08]Status: DisposedITAT Mumbai28 Mar 2019AY 2007-08

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

Section 10(38)Section 142(1)Section 143(1)Section 143(2)

…me of Rs. 1,62, 95,0467- as Long Term capital gains of Rs. 1,78, 33, 4647- and Short 2 Shri Deepak K. Shah Term Capital Loss of Rs. 15, 38,4187- and ignoring the decision of Gujarat High Court in the case of CIT vs. Motilal Hirabhai Spg & Wvg Co. Ltd [1978] 113 ITR 173 (Guj) and Raja Bahadur Visheshwar Singh vs CIT [1961] 41 ITR 685 (SC) wherein it is stated that when the assessee has huge quantum periodic, repetitive and voluminous with substantial regularity of transactions then it indicate systematic and organized activity with profit motive." 2. "Whether on the facts in the circumstances of the case and in…

Muniwar Abad Charitable Trust, Mumbai vs. Dy Director of Income Tax (Exemptions) - I(1), Mumbai

In the result, both the appeals of the assessee are allowed

ITA 2176/MUM/2016[2011-12]Status: DisposedITAT Mumbai11 Oct 2018AY 2011-12

Bench: Shri B.R. Baskaran (Am) & Shri Ramlal Negi (Jm)

Section 11Section 11(2)Section 12ASection 2(15)

…THE INCOME TAX APPELLATE TRIBUNAL “G” Bench, Mumbai Before Shri B.R. Baskaran (AM) & Shri Ramlal Negi (JM) I.T.A. No. 2176/Mum/2016 (Assessment Year 2011-12) I.T.A. No. 7235/Mum/2016 (Assessment Year 2012-13) M/s. Muniwar Abad Dy. DIT(E)-I(1) Vs. Charitable Trust 6th Floor 405A/407, Jolly Bhavan Piramal Chambers No. 1, 10, New Marine Lalbaug, Parel Lines, Mumbai-400 020. Mumbai-400 012. PAN : AAATM0140K (Appellant) (Respondent) Assessee by S/Shri Porus Kaka, Manish K. Kanth & Mayank V. Thosar Department by Shri V. Vidhyadhar Date of Hearing 16.07.2018 Date of Pronouncement 11.10.2018 O R D E R Per B.R. Ba…

ITO Ward-10(4), Kolkata vs. M/S Aum Capital Market Pvt. Ltd., Kolkata

Appeal is dismissed

ITA 302/KOL/2017[2011-12]Status: DisposedITAT Kolkata28 Sept 2018AY 2011-12

Bench: Sri J. Sudhakar Reddy& Sri S.S. Godara] I.T.A. No. 302/Kol/2017 Assessment Year: 2011-12 Income Tax Officer, Ward-10(4), Kolkata..………....................................….….……………….…......Appellant M/S. Aum Capital Market Pvt. Ltd.....................…..…….……………………………………………..……Respondent 5, Lower Rowdon Street Kolkata – 700 020 [Pan: Aaaco 7624 B] Appearances By: Shri Ravi Tulsiyan, Fca, Appeared On Behalf Of The Assessee. Shri Saurabh Kumar, Addl. Cit, Dr Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : July 7Th,2018 Date Of Pronouncing The Order : September 28Th,2018 Order Per S.S. Godara, Jm :- This Revenue’S Appeal For The Assessment Year 2010-11 Arises Against The Commissioner Of Income Tax (Appeals) – 4, Kolkata’S Order Dated 18/11/2016 Passed In Case No. Ita No.1125/Cit(A)-4/Range-10/Kol/14015 Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961 (In Short ‘Act’).

Section 143(3)Section 14ASection 43(5)

…. If the volume, frequency and regularity with which transactions are carried out indicate systematic and organized activity with profit motive, then it would be a case of business profits and not capital gain. CIT Vs. Motilal Hirabhai Spg. And Wvg. Co. Ltd., 113 ITR 173 (Guj); Raja Bahadur Viswshwara Singh Vs. CIT, 41 ITR 685 (SC). 7 I.T.A. No. 302/Kol/2017 Assessment Year: 2011-12 M/s. Aum Capital Market Pvt. Ltd (d) Purchase without an intention to resell where they are sold under changed circumstances would be capital gains. CIT Vs. PKN, 60 ITR 65 (SC). Purchase with an intention to resell would render the…

ACIT, New Delhi vs. M/S. Puran Associates Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is partly allowed for statistical purposes

ITA 5054/DEL/2015[2011-12]Status: DisposedITAT Delhi20 Aug 2018AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Paramita Tripathi, CIT-DRFor Respondent: Shri M.P. Rastogi, Adv
Section 10(38)Section 111ASection 143(3)Section 14A

…n of accounts or by showing the shares as investment. It will depend on the facts of the case. The volume, frequency and regularity of share transactions done in organized manner indicate business activity [CIT vs. Motilal Hirabhai Spg. & Svg. Co. Ltd. (1978) 113 ITR 173 (guj)].” 6. Thereafter, he again referred to various decisions as discussed from pages 15 to 22 of his order including CBDT Circular No.4 of 2007 dated 15th June, 2007 and concluded that assessee was dealing in sale and purchase of shares for earning profit and tax them under the head ‘business income’ in the following manner: Long Term Capital…

DCIT, New Delhi vs. M/S. Puran Associates Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is partly allowed for statistical purposes

ITA 820/DEL/2013[2009-10]Status: DisposedITAT Delhi20 Aug 2018AY 2009-10

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Paramita Tripathi, CIT-DRFor Respondent: Shri M.P. Rastogi, Adv
Section 10(38)Section 111ASection 143(3)Section 14A

…n of accounts or by showing the shares as investment. It will depend on the facts of the case. The volume, frequency and regularity of share transactions done in organized manner indicate business activity [CIT vs. Motilal Hirabhai Spg. & Svg. Co. Ltd. (1978) 113 ITR 173 (guj)].” 6. Thereafter, he again referred to various decisions as discussed from pages 15 to 22 of his order including CBDT Circular No.4 of 2007 dated 15th June, 2007 and concluded that assessee was dealing in sale and purchase of shares for earning profit and tax them under the head ‘business income’ in the following manner: Long Term Capital…

ACIT, New Delhi vs. M/S Puran Associates Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is partly allowed for statistical purposes

ITA 3078/DEL/2011[2008-09]Status: DisposedITAT Delhi20 Aug 2018AY 2008-09

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Paramita Tripathi, CIT-DRFor Respondent: Shri M.P. Rastogi, Adv
Section 10(38)Section 111ASection 143(3)Section 14A

…n of accounts or by showing the shares as investment. It will depend on the facts of the case. The volume, frequency and regularity of share transactions done in organized manner indicate business activity [CIT vs. Motilal Hirabhai Spg. & Svg. Co. Ltd. (1978) 113 ITR 173 (guj)].” 6. Thereafter, he again referred to various decisions as discussed from pages 15 to 22 of his order including CBDT Circular No.4 of 2007 dated 15th June, 2007 and concluded that assessee was dealing in sale and purchase of shares for earning profit and tax them under the head ‘business income’ in the following manner: Long Term Capital…

Vidyasagar M.P Sah, Mumbai vs. DCIT 23(3), Mumbai

In the result, this appeal by the assessee stands dismissed

ITA 527/MUM/2016[2012-13]Status: DisposedITAT Mumbai04 Dec 2017AY 2012-13

Bench: Shri Shamim Yahya, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./I.T.A. No. 527/Mum/2016 ("नधा"रण वष" / Assessment Year: 2012-13) Vidyasagar M. P. Sah Dy. Cit-23(3), बनाम/ 22-A, Bandstand Society, Matru Mandir, Tardeo Road, 197-C, Kane Road, Bandra (W), Mumbai Vs. Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aafps 5412 H (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Ajay R. Singh ""यथ" क" ओर से/Respondent By : Ms. Aarjoo Garodia सुनवाई क" तार"ख / : 04.12.2017 Date Of Hearing घोषणा क" तार"ख / : 04.12.2017 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Assessee Directed Against The Order By The Commissioner Of Income Tax (Appeals)-34, Mumbai (‘Cit(A)’ For Short) Dated 12.01.2016 & Pertains To The Assessment Year (A.Y.) 2012-13. The Grounds Of Appeal Read As Under: 1. Short Term Capital Gain Of Rs.3,51,66,426/- Treated As Business Income 1. The Learned Cit(A) Erred In Treating The Short Term Capital Gain Of Rs.3,51,66,426/- As 'Business Income1 Without Appreciating The Crucial Facts That The Assessee Is A Professional / Consultant For Exploration & Drilling Activities For Oil Wells / Rigs Etc. Which Is The Principal Source Of Income Since 32 Years, Wherein He Has To Devote Maximum Time & The Activity Has Been Accepted By The Department In All The Prior Years As Well As In The Relevant

For Appellant: Shri Ajay R. SinghFor Respondent: Ms. Aarjoo Garodia

…ssesses and it is for the assessee to produce evidence from the records as to whether he maintained any distinction between shares which are held investment and those held as stock-in-trade. It is also held in the case of Motilal Hirabhai Spg. & Svg. Co. Ltd. 113 ITR 173 (Guj.) and Raja Bahadur Visheshwara Sing 41 ITR 685 (SC) that treatment in the books by an assessee will not be conclusive and if the volume, frequency and regularity at which transactions are carried out indicate systematic and organized activity with profit motive then it become business profit not capital gain. In the case of CIT vs. PKN Co. L…

Jaswant J Shah, Mumbai vs. Asst CIT Cen Cir 32, Mumbai

In the result appeal of the assessee in ITA No

ITA 2599/MUM/2014[2005-06]Status: DisposedITAT Mumbai08 May 2017AY 2005-06

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm

Section 127Section 127(3)Section 133ASection 143(2)Section 143(3)Section 263

…ject of making profit. To strengthen his view, reliance is placed on the following decisions: Mr. Jaswantlal J Shah CIT vs. Motlay Finance (P) Ltd. 290 ITR 719(MP) OCIT vs. Smt. Oeepaben Amitbhai Shah 99 ITD 219(Ahd) CIT vs Motilal Hirabhai Sp. Wvg. Co. Ltd. 113 ITR 173 (Guj) Shri Motilal Oswal-ITA No. 3860/M/2001 AY 1993-94 G Bench (Mumbai) Keeping all these facts and circumstances, the decision of the Assessing Officer by treating share transactions as business income in place of STCG claimed by the appellant of Rs. 80,33,589/- is upheld and ground of appeal is dismissed. 17. We have considered rival contenti…

Jaswant J Shah, Mumbai vs. Asst CIT Cen Cir 32, Mumbai

In the result appeal of the assessee in ITA No

ITA 2598/MUM/2014[2009-10]Status: DisposedITAT Mumbai08 May 2017AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm

Section 127Section 127(3)Section 133ASection 143(2)Section 143(3)Section 263

…ject of making profit. To strengthen his view, reliance is placed on the following decisions: Mr. Jaswantlal J Shah CIT vs. Motlay Finance (P) Ltd. 290 ITR 719(MP) OCIT vs. Smt. Oeepaben Amitbhai Shah 99 ITD 219(Ahd) CIT vs Motilal Hirabhai Sp. Wvg. Co. Ltd. 113 ITR 173 (Guj) Shri Motilal Oswal-ITA No. 3860/M/2001 AY 1993-94 G Bench (Mumbai) Keeping all these facts and circumstances, the decision of the Assessing Officer by treating share transactions as business income in place of STCG claimed by the appellant of Rs. 80,33,589/- is upheld and ground of appeal is dismissed. 17. We have considered rival contenti…

Asst CIT 24(1), Mumbai vs. Dipak Kanayalal Shah, Mumbai

In the result, CO filed by the assessee is partly allowed

ITA 3661/MUM/2015[2010-11]Status: DisposedITAT Mumbai12 Apr 2017AY 2010-11

Bench: Shri D. Karunakara Rao & Shri Pawan Singhacit-24(1), फनाभ/ Shri Dipak Kanayalal Shah, 31-B, 1St Floor, Laxmi Estate, Mumbai. Vs. Azad Road, Andheri (E), Mumbai – 400 012. स्थामी रेखा सं./ Pan : Aveps4654B (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) C.O. No.12/M/2017 (Ay 2010-11) Shri Dipak Kanayalal Shah, फनाभ/ Acit-24(1), 31-B, 1St Floor, Laxmi Estate, Mumbai. Vs. Azad Road, Andheri (E), Mumbai – 400 012. स्थामी रेखा सं./ Pan : Aveps4654B (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) अऩीराथी की ओय से / Assessee By : Shri Rajan Vora / Mr. Hemen Chandariya प्रत्मथी की ओय से/ Revenue By : Ms. Beena Santosh, Dr

For Appellant: Shri Rajan Vora / Mr. HemenFor Respondent: Ms. Beena Santosh, DR
Section 10(38)Section 111Section 111ASection 14ASection 2(29)(b)

…allowing business income of Rs. 4,19,33,272/- as Short Term Capital Gains of Rs. 1,53,54,744/- and Long Term Capital Gains of Rs. 2,65,78, 528/- and ignoring the decision of Gujarat High Court in the case of CIT vs. Motilal Hirabhai Spg & Wvg. Co. Ltd [1978] 113 ITR 173 (Guj) and Raja Bahadur Visheshwar Singh vs. CIT [1961] 41 ITR 685 (SC) wherein it is stated that when the assessee has huge quantum periodic, repetitive and voluminous with substantial regularity of transactions then it indicate systematic and organized activity with profit motive.” 3. Further, bringing our attention to assessee‟s CO, Ld Counsel…

DCIT, Circle - 10, Kolkata vs. M/S. Veda Commercial Pvt. Ltd., Kolkata

Appeal is partly allowed for statistical purposes

ITA 1527/KOL/2010[2007-08]Status: DisposedITAT Kolkata16 Nov 2016AY 2007-08

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri Rabin Chaudhury, JCIT
Section 143(3)Section 14A

…frequency and regularity with which transactions are carried out indicate systematic and organized activity with profit motive, then it would be a case of business profits and not capital gain. CIT vs Motilal Hirabhai Spg. And Wvg. Co. Ltd reported in (1978) 113 ITR 173 (Guj) and Raja Bahadur Visheshwara Singh (Deceased) & Ors vs CIT reported in (1961) 41 ITR 685 (SC) (d) Purchase without an intention to resell where they are sold under changed circumstances would be capital gains. CIT vs P.K.N. Co. Ltd reported in (1966) 60 ITR 65 (SC). Purchase with an intention to resell would render the gain profit on sale…

DCIT, Circle - 10, Kolkata vs. M/S. Veda Commercial Pvt. Ltd., Kolkata

Appeal is partly allowed for statistical purposes

ITA 1064/KOL/2010[2006-07]Status: DisposedITAT Kolkata16 Nov 2016AY 2006-07

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri Rabin Chaudhury, JCIT
Section 143(3)Section 14A

…frequency and regularity with which transactions are carried out indicate systematic and organized activity with profit motive, then it would be a case of business profits and not capital gain. CIT vs Motilal Hirabhai Spg. And Wvg. Co. Ltd reported in (1978) 113 ITR 173 (Guj) and Raja Bahadur Visheshwara Singh (Deceased) & Ors vs CIT reported in (1961) 41 ITR 685 (SC) (d) Purchase without an intention to resell where they are sold under changed circumstances would be capital gains. CIT vs P.K.N. Co. Ltd reported in (1966) 60 ITR 65 (SC). Purchase with an intention to resell would render the gain profit on sale…

D.C.I.T CC - VIII, Kolkata vs. M/S Purbanchal Leasing Ltd, Kolkata

In the result, appeal by the revenue is dismissed

ITA 1429/KOL/2013[2006-07]Status: DisposedITAT Kolkata19 Oct 2016AY 2006-07

Bench: Shri N. V. Vasudevan,J.M. & Shri M. Balaganesh, A.M.)

For Appellant: Shri A. K. Tulsiyan, FCAFor Respondent: Shri G. Mallikarjuna, CIT,DR
Section 143(3)Section 263

…. If the volume, frequency and regularity with which transactions are carried out indicate systematic and organized activity with profit motive, then it would be a case of business profits and not capital gain. CIT Vs. Motilal Hirabhai Spg. And Wvg. Co. Ltd., 113 ITR 173 (Guj); Raja Bahadur Viswshwara Singh Vs. CIT, 41 ITR 685 (SC). ITA No.1429/Kol/2013-M/s. Purvanchal Leasing Ltd. A.Y.2006-07 7 (d) Purchase without an intention to resell where they are sold under changed circumstances would be capital gains. CIT Vs. PKN, 60 ITR 65 (SC). Purchase with an intention to resell would render the gain profit on sale…

Anand R Bahl, Mumbai vs. DCIT RG 20(3), Mumbai

In the result, the appeals by the assessee are dismissed and that by the Revenue is allowed for statistical purposes

ITA 7706/MUM/2011[2007-08]Status: DisposedITAT Mumbai20 Jul 2016AY 2007-08

Bench: Shri Sanjay Arora & Shri Pawan Singh

For Appellant: Shri Hiten M. Vasant (AR)For Respondent: Shri B. Pruseth (DR)
Section 2(14)

…f Hyderabad 1954] 25 ITR 449 (SC); Allahabad Bank ltd. vs. CIT [1953] 24 ITR 519 (SC); CIT vs. Smt. Minal Rameshchandra [1987] 167 ITR 0507 (Guj); CIT vs .Godavari Corporation Ltd. [1985] 156 ITR 835 (Mad); CIT vs. Motilal Hirabhai Spg. & Wvg. Co. Ltd. [1978] 113 ITR 173 (Guj); A.P. Damodara Shenoy vs. CIT [1954] 26 ITR 0650 (Bom); W.L. Knopp vs. CIT [1948] 16 ITR 398 (Mad); Punjab Co-operative Bank Ltd. vs. CIT [1940] 8 ITR 635 (PC) 6.3 We may next examine the facts of the case. The first thing that strikes us is that the assessee is a trader/operator in the F&O market, i.e., deals in shares in the said market o…