Indl. Development Co. (P) Ltd., 82 ITR 588 (SC). (ii). CIT v. H. Holck Larsen

288 ITR 641Reported decision2007#2860 most cited

What is Indl. Development Co. (P) Ltd., 82 ITR 588 (SC). (ii). CIT v. H. Holck Larsen authority for?

Surplus received on sale and purchase of shares should be treated as capital gains (short-term or long-term as applicable) and not as business income.

41

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2010 to 2025.

Also referred to as

Indl. Development Co. (P) Ltd. · CIT v. H. Holck Larsen · capital gains · business income · short term capital gain · long term capital gain · sale of shares

Issues it is cited on

period of holdingsection 2(14)short term capital gainsshort term capital gainsection 36(1)(iii)section 40(a)section 36(1)section 37(1)section 36long term capital gainsection 37section 14a

Judgments citing Indl. Development Co. (P) Ltd., 82 ITR 588 (SC). (ii). CIT v. H. Holck Larsen

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

…cepting the treatment of the assessee. 5.8.4. We find that CBDT Circular No. 4/2007 dated 15.6.2007 on the impugned subject had in para 8 stated as below:- 8. The Authority for Advance Rulings (AAR) in Fidelity Northstar Fund& Ors ., IN RE reported in (2007) 288 ITR 641 , referring to the decisions of the Supreme Court in several cases, has culled out the following principles : (i)”Where as company purchases and sells shares, it must be shown that they were held as stock –in-trade and that existence of the power to purchase and sell shares in the memorandum of association is not decisive of the nature of transac…

DCIT, New Delhi vs. M/S. Malvika Investments & Services Pvt. Ltd., New Delhi

In the result the appeal by the Revenue is dismissed

ITA 123/DEL/2014[2010-11]Status: DisposedITAT Delhi29 Sept 2016AY 2010-11

Bench: Shri J. Sudhakar Reddy & Shri Sudhanshu Srivastavaa.Y. 2010-11

For Appellant: Sh. Rajesh Kumar, Sr.D.RFor Respondent: Sh. Rakesh Gupta, Adv

…e considered in determining whether the activity of trading of shares is to be taxed under the head 'Income from Business & profession' or 'Short Term Capital Gains'. The AO has also referred to the Hon'ble Authority- for Advance Ruling's decision reported in 288 ITR 641 on this issue. The AO has finally discussed the decision of Hon'ble Supreme Court in the case of CIT, Bombay vs. H. Hoick Larsen, 160 ITR 67. AO has highlighted the fact that assessee earned dividend of Rs. 1,24,616/-. It has been concluded that the assessee has deliberately tried to show huge income earned from mutual funds as capital gains inst…

DCIT, New Delhi vs. M/S. Dimension Consulting Pvt. Ltd., New Delhi

In the result, revenue’s appeal is dismissed and the cross objection of

ITA 1834/DEL/2012[2008-09]Status: DisposedITAT Delhi20 Sept 2016AY 2008-09

Bench: Shri S.V. Mehrotra : & Ms. Suchitra Kamble : & Acit Circle 10(1), Vs. M/S Dimension Consulting Pvt. Ltd., New Delhi. B-11/8127, Vasant Kunj, New Delhi. Pan: Aaacd 3264 C C.O. 224/Del/2010 [In Ita No. 2321/Del/2010 (A.Y: 2006-07 ) & C.O. 217/Del/2012 M/S Dimension Consulting Pvt. Ltd., Vs. Acit Circle 10(1), B-11/8127, Vasant Kunj, New Delhi. New Delhi.

For Appellant: Shri V.P. Gupta AdvFor Respondent: Shri Anil Kumar Sharma Sr. DR

…scripts with turnover of Rs. 37,63,441/-. These shares were traded frequently with a motive to earn profit.” 4. After referring to various case laws and after considering the decision of Authority for Advance Rulings in the case of Fidelity Group reported in 288 ITR 641 and the guidelines laid down by CBDT, AO held that short term capital gain earned on entire sale/ purchase of shares was business income. 5. Ld. CIT(A) while partly allowing the assessee’s appeal held that gain earned by the company on sale of shares within a period of 30 days was in the nature of business income and the rest gain was to be as…

ACIT, New Delhi vs. M/S. Dimension Consulting Pvt. Ltd., New Delhi

In the result, revenue’s appeal is dismissed and the cross objection of

ITA 2321/DEL/2010[2006-07]Status: DisposedITAT Delhi20 Sept 2016AY 2006-07

Bench: Shri S.V. Mehrotra : & Ms. Suchitra Kamble : & Acit Circle 10(1), Vs. M/S Dimension Consulting Pvt. Ltd., New Delhi. B-11/8127, Vasant Kunj, New Delhi. Pan: Aaacd 3264 C C.O. 224/Del/2010 [In Ita No. 2321/Del/2010 (A.Y: 2006-07 ) & C.O. 217/Del/2012 M/S Dimension Consulting Pvt. Ltd., Vs. Acit Circle 10(1), B-11/8127, Vasant Kunj, New Delhi. New Delhi.

For Appellant: Shri V.P. Gupta AdvFor Respondent: Shri Anil Kumar Sharma Sr. DR

…scripts with turnover of Rs. 37,63,441/-. These shares were traded frequently with a motive to earn profit.” 4. After referring to various case laws and after considering the decision of Authority for Advance Rulings in the case of Fidelity Group reported in 288 ITR 641 and the guidelines laid down by CBDT, AO held that short term capital gain earned on entire sale/ purchase of shares was business income. 5. Ld. CIT(A) while partly allowing the assessee’s appeal held that gain earned by the company on sale of shares within a period of 30 days was in the nature of business income and the rest gain was to be as…

Kamal Kishore Agarwal, Mumbai vs. ITO 24(2)(1), Mumbai

In the result, appeals for A

ITA 3515/MUM/2014[2010-11]Status: DisposedITAT Mumbai13 Jul 2016AY 2010-11
For Appellant: Shri S.C. Tiwari & Rutuja PawarFor Respondent: Shri Morya Pratap
Section 143(3)

…e Hon‟ble Supreme court laid down that the frequency of transactions was not decisive. The assessee in this case was an investor in shares and not a dealer in shares. 9. Furthermore authority for advance ruling in the case of Fidelity Northsatr Fund & another 288 ITR 641 (AAR) despite number of shares transactions held that the assessee was an investor and not a trader in shares. Mr. Kamal Kishore Agarwal 10. In the case we found that period of holding is sufficient long enough to justify the capital gain. It is quite relevant to point out that the gain arising from sale of shares held by an assessee for any per…

DCIT 24(2), Mumbai vs. Kamal Kioshor Agarwal, Mumbai

In the result, appeals for A

ITA 5974/MUM/2011[2008-09]Status: DisposedITAT Mumbai13 Jul 2016AY 2008-09
For Appellant: Shri S.C. Tiwari & Rutuja PawarFor Respondent: Shri Morya Pratap
Section 143(3)

…e Hon‟ble Supreme court laid down that the frequency of transactions was not decisive. The assessee in this case was an investor in shares and not a dealer in shares. 9. Furthermore authority for advance ruling in the case of Fidelity Northsatr Fund & another 288 ITR 641 (AAR) despite number of shares transactions held that the assessee was an investor and not a trader in shares. Mr. Kamal Kishore Agarwal 10. In the case we found that period of holding is sufficient long enough to justify the capital gain. It is quite relevant to point out that the gain arising from sale of shares held by an assessee for any per…

Kamal Kishor Agarwal, Mumbai vs. Addl CIT RG 24(2), Mumbai

In the result, appeals for A

ITA 4463/MUM/2009[2006-07]Status: DisposedITAT Mumbai13 Jul 2016AY 2006-07
For Appellant: Shri S.C. Tiwari & Rutuja PawarFor Respondent: Shri Morya Pratap
Section 143(3)

…e Hon‟ble Supreme court laid down that the frequency of transactions was not decisive. The assessee in this case was an investor in shares and not a dealer in shares. 9. Furthermore authority for advance ruling in the case of Fidelity Northsatr Fund & another 288 ITR 641 (AAR) despite number of shares transactions held that the assessee was an investor and not a trader in shares. Mr. Kamal Kishore Agarwal 10. In the case we found that period of holding is sufficient long enough to justify the capital gain. It is quite relevant to point out that the gain arising from sale of shares held by an assessee for any per…

DCIT Cir - 6, Kolkata. vs. M/S K.B. Capital Markets Ltd., Kolkata

In the result, the appeal by the Assessee is partly allowed, while the appeal by the revenue is dismissed

ITA 1882/KOL/2012[2008-2009]Status: DisposedITAT Kolkata13 May 2016AY 2008-2009

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No. 1882/Kol/2012 Assessment Year : 2008-09

For Appellant: Shri D.S.Damle, FCAFor Respondent: Shri Rajat Subhra. Biswas, CIT(DR) &
Section 10Section 111ASection 14ASection 94(7)

…st the assessments completed on similar set of facts, the revenue has accepted that the income on sale of shares held as investments gave rise to capital gain. (d) the assessee relied on the ruling of the AAR in the case of Fidelity North Star Fund and others 288 ITR 641 wherein it was held that the entries made in the books of accounts whereby the shares are shown as investment or stock in trade would be more material in coming to the occlusion whether the gain sale of shares would give rise to business income or income under the head capital gain. (e) the assessee pointed out that gains arising from sale on lon…

Kb Capital Markets (P) Ltd., Kolkata vs. D.C.I, .T Cir - 6, Kolkata.

In the result, the appeal by the Assessee is partly allowed, while the appeal by the revenue is dismissed

ITA 1726/KOL/2012[2008-2009]Status: DisposedITAT Kolkata13 May 2016AY 2008-2009

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No. 1882/Kol/2012 Assessment Year : 2008-09

For Appellant: Shri D.S.Damle, FCAFor Respondent: Shri Rajat Subhra. Biswas, CIT(DR) &
Section 10Section 111ASection 14ASection 94(7)

…st the assessments completed on similar set of facts, the revenue has accepted that the income on sale of shares held as investments gave rise to capital gain. (d) the assessee relied on the ruling of the AAR in the case of Fidelity North Star Fund and others 288 ITR 641 wherein it was held that the entries made in the books of accounts whereby the shares are shown as investment or stock in trade would be more material in coming to the occlusion whether the gain sale of shares would give rise to business income or income under the head capital gain. (e) the assessee pointed out that gains arising from sale on lon…

Pr. Commissioner of Income Tax-3 vs. Dreamland Build Tech P. Ltd

ITA/886/2015HC Delhi26 Apr 2016

Bench: Itat Being The Assessee'S Appeals). 2. The Common Question Sought To Be Urged In These Appeals By The Revenue Is Whether The Itat Was Justified In Treating The Income Earned By The Assessee From The Shares In Which It Invested Its Surplus Funds As 'Short Term Capital Gains' & Not Under The Head 'Income From Business & Profession'? 3. The Assessee Company Was Incorporated On 19^'^ October 2004. In The First Ay I.E. 2005-06 It Declared Income From The Investment In Shares As

Section 143(3)

…entral) v. Associated Industrial Development Company (P) Ltd (1971) 82ITR 586 (SC), Commissioner of Income Tax, Bombay v. H. Hoick Larsen (1986)160 ITR 67 (SC) and the decision of the Authority for Advance Rulings in the case of Fidelity Northstar Fund (2007) 288 ITR 641 (AAR). He also referred to the Central Board of Direct Taxes ('CBDT') guidelines issued on IS'^ December 2005. 8. There are certain factual aspects which have to be first considered before the above submissions of Mr. Manchanda can be examined. This has been adverted to by the ITAT in the impugned order. For the AY 2006-07, the sum of Rs. 1,75,51…

Pr. Commissioner of Income Tax, Central -3 vs. Dreamland Build Tech P. Ltd

ITA/829/2015HC Delhi26 Apr 2016

Bench: Itat Being The Assessee'S Appeals). 2. The Common Question Sought To Be Urged In These Appeals By The Revenue Is Whether The Itat Was Justified In Treating The Income Earned By The Assessee From The Shares In Which It Invested Its Surplus Funds As 'Short Term Capital Gains' & Not Under The Head 'Income From Business & Profession'? 3. The Assessee Company Was Incorporated On 19^'^ October 2004. In The First Ay I.E. 2005-06 It Declared Income From The Investment In Shares As

Section 143(3)

…entral) v. Associated Industrial Development Company (P) Ltd (1971) 82ITR 586 (SC), Commissioner of Income Tax, Bombay v. H. Hoick Larsen (1986)160 ITR 67 (SC) and the decision of the Authority for Advance Rulings in the case of Fidelity Northstar Fund (2007) 288 ITR 641 (AAR). He also referred to the Central Board of Direct Taxes ('CBDT') guidelines issued on IS'^ December 2005. 8. There are certain factual aspects which have to be first considered before the above submissions of Mr. Manchanda can be examined. This has been adverted to by the ITAT in the impugned order. For the AY 2006-07, the sum of Rs. 1,75,51…

Pr. Commissioner of Income Tax, Central-3 vs. Dreamland Build Tech P. Ltd

ITA/908/2015HC Delhi26 Apr 2016

Bench: Itat Being The Assessee'S Appeals). 2. The Common Question Sought To Be Urged In These Appeals By The Revenue Is Whether The Itat Was Justified In Treating The Income Earned By The Assessee From The Shares In Which It Invested Its Surplus Funds As 'Short Term Capital Gains' & Not Under The Head 'Income From Business & Profession'? 3. The Assessee Company Was Incorporated On 19^'^ October 2004. In The First Ay I.E. 2005-06 It Declared Income From The Investment In Shares As

Section 143(3)

…entral) v. Associated Industrial Development Company (P) Ltd (1971) 82ITR 586 (SC), Commissioner of Income Tax, Bombay v. H. Hoick Larsen (1986)160 ITR 67 (SC) and the decision of the Authority for Advance Rulings in the case of Fidelity Northstar Fund (2007) 288 ITR 641 (AAR). He also referred to the Central Board of Direct Taxes ('CBDT') guidelines issued on IS'^ December 2005. 8. There are certain factual aspects which have to be first considered before the above submissions of Mr. Manchanda can be examined. This has been adverted to by the ITAT in the impugned order. For the AY 2006-07, the sum of Rs. 1,75,51…

Rajeshwar Raj Bajaj, Mumbai vs. Asst CIT 12(2), Mumbai

In the result, the appeal filed by the assessee in ITA N0

ITA 3200/MUM/2012[2008-09]Status: DisposedITAT Mumbai15 Apr 2016AY 2008-09

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 3200/Mum/2012 ("नधा"रण वष" / Assessment Year : 2008-09) Shri Rajeshwar Raj Bajaaj, Asstt. Commissioner Of बनाम/ C/O Mangaldas D. Shah & Income Tax – 12(2), V. Co.,506, Lotus House, 5T H 1St Floor, Floor,33-A, New Marine R. No. 123, Lines,Mumbai – 400 020. Aayakar Bhavan, M.K. Marg, Mumbai – 400 020. "थायी लेखा सं./Pan : Aafpb 2036G (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri Kailash Gaikward (Sr
Section 143(2)Section 143(3)

…2007, Hon’ble Supreme Court decision in Commissioner of Income Tax (Central), Calcutta v. Associated Industrial Development Company (P) Ltd. (82 ITR 586) ITA 3200/Mum/2012 4 and Commissioner of Income Tax, Bombay v. Holck Larsen (160 ITR 67), AAR Ruling in 288 ITR 641. Thus, the A.O. held that the transactions in shares entered into by the assessee cannot be treated as investment in shares and accordingly the resultant income/loss arising out of them cannot be treated as income/loss under the head capital gain keeping in view the substantial volume and frequency of transactions in shares, ratio between purchas…

ACIT, Circle - 31, Kolkata vs. Pradyumna Dalmia, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 1280/KOL/2010[2007-08]Status: DisposedITAT Kolkata20 Jan 2016AY 2007-08

Bench: : Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Sanjay Mukherjee, JCIT, ld. Sr.DRFor Respondent: Shri R.N Bajoria, Sr. Advocate &
Section 143(3)Section 144ASection 14A

…ithout considering the frequency of purchase and sales of shares, period of holding and magnitude of transactions of shares . 2. The Ld.CIT(A) also erred in law without relying on CBDT Circular No. 4 of 2007 and the decision of Authority for Advance Ruling in 288 ITR 641 on this subject. 3.2. The Learned DR vehemently supported the order of the Learned AO. In addition to this, he submitted that out of the total gains on share transactions of Rs. 57,27,722/- derived by the assessee, a sum of Rs. 53,55,489/- was derived out of sale of 35231 shares of Texmaco Ltd. The Learned DR submitted that the stock exchange ra…

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

…volumes of the transactions suggest that it was not a case of investment but business. The assessee has converted stock in trade to investments. He placed reliance on the decision of the Authority for Advance Ruling in the case of Fidelity Group reported in 288 ITR 641 (AAR). He submitted that where a company purchases and sells shares, it must be shown that they were held as stock in trade and that existence of the power to purchase and sell shares in the Memorandum of Association is not of decisive of the nature of transaction. He submitted that the substantial nature of transactions, the manner of maintain…

ACIT, Circle - 7, Kolkata vs. C.D. Equifinance Pvt. Ltd., Kolkata

In the result, all the appeals filed by the Revenue are dismissed, while the appeal of the assessee is allowed

ITA 1790/KOL/2008[2005-06]Status: DisposedITAT Kolkata09 Dec 2015AY 2005-06

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 10(38)

…hat the case laws relied upon by the Assessing Officer to come to his conclusion were distinguishable on facts and actually some of the case laws so relied upon including especially the decision of the Authority for Advanced Ruling in Fidelity North Star Fund 288 ITR 641 advanced the claim of the assessee. Accordingly, relying on the said judicial pronouncements as well as the CBDT Circular No. 4 of 2007 and having regard to all the facts and circumstances of the case as discussed by him elaborately in his impugned order, the ld. CIT(Appeals) held that the profit of Rs.3,67,36,507/- was earned by the assessee on…

Acee Enterprises vs. Commissioner of Income Tax – I

The appeals are disposed of

ITA/300/2014HC Delhi24 Sept 2014

…cidated in Circular No.4 of 2007 dated 15th June, 2007 as well as the decision of the Supreme Court in Commissioner of Income Tax (Central), Calcutta Vs. Associated Industrial Company Pvt. Ltd., [1971] 82 ITR 586 and Fidelity Northstar Fund, In Re, [2007] 288 ITR 641 (AAR), which are 2014:DHC:4984-DB ITAs 300/2014 & 304/2014 Page 3 of 4 mentioned in the aforesaid circular. 5. By order dated 28th July, 2014, after referring to the factual matrix of the assessment years 2005-06 and 2006-07, we had dismissed ITA Nos.301/2014 and 302/2014, but n…

Radials International vs. Asstt. Commissioner of Income Tax

ITA/485/2012HC Delhi25 Apr 2014

Bench: The Court Is: “Whether, The Shares Invested Through A Portfolio Management 2014:Dhc:2173-Db

Section 271(1)(c)Section 88E

…ITA No.485/2012 Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 17.04.2014 Pronounced on: 25.04.2014 + ITA No.485/2012 RADIALS INTERNATIONAL ..... Appellant Through: Mr. Kaanan Kapur, Advocate. Versus ASSTT. COMMISSIONER OF INCOME TAX ..... Respondent Through: Mr. N.P. Sahni, Sr. Standing Counsel. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.V. EASWAR MR. JUSTICE S. RAVINDRA BHAT % 1. This is an appeal filed against the order of the Income Tax Appellate Tribunal (“ITAT”)…

Commissioner of Income Tax, Rajahmundry vs. M/s. Kakinada Coop. Town Bank LTd., Kakinada

ITTA/485/2012HC Telangana15 Nov 2012

Bench: GODA RAGHURAM,M.S.RAMACHANDRA RAO

CIT vs. Vinay Mittal

ITA/1172/2011HC Delhi27 Apr 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

…ITA 1172/2011 Page 1 of 13 $~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 27th April, 2012. + ITA 1172/2011 CIT ..... Appellant Through Mr. Kamal Sawhney, sr. standing counsel with Mr. Amit Shrivastava, Adv. versus VINAY MITTAL ..... Respondent Through Mr. Ajay Vohra, Ms. Kavita Jha and Mr. Somnath Shukla, Advs. CORAM: HON'BLE MR. JU…