Karam Chand Thapar and Brothrs P Ltd. v. CIT

83 ITR 899Supreme Court of India1971#10769 most cited

What is Karam Chand Thapar and Brothrs P Ltd. v. CIT authority for?

The classification of shares by an assessee as 'investment' or 'stock-in-trade' is not conclusive in determining the nature of the transaction for tax purposes. Activities closely connected to the assessee's main business line are inferred as business income.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2019.

Also referred to as

Karam Chand Thapar and Brothrs P Ltd. v. CIT · 83 ITR 899 · SC · shares · investment · stock in trade · business income · capital gains · classification of shares · nature of transaction

Judgments citing Karam Chand Thapar and Brothrs P Ltd. v. CIT

Kifs Securities Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-1(3), Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 63/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2013-14

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

Kifs Securities Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-1(3), Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 1885/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2014-15

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

Dy.Commissioner of Income Tax Circle-1(3), Ahmedabad vs. Kifs Pvt.Ltd., Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 914/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2012-13

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

Kifs Securities Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-1(3), Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 786/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2012-13

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

The Dy. CIT., Circle-3, Ahmedabad vs. Khandwala Integrated Financial Services Pvt. Ltd, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 932/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2010-11

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

Kifs Securities Ltd., Ahmedabad vs. The Jt.CIT, Range- 3, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 643/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2010-11

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

The ACIT, Circle-3, Ahmedabad vs. Kifs Securities Limited, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 2882/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2011-12

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

Kifs Securities Ltd., Ahmedabad vs. The Jt.CIT, Range- 3, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 2717/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2011-12

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…4,640/- made by AO on account of STCG of Rs.56,86,282/- on shares as business income and LTCG of Rs.9,38,358/- on shares as business income without appreciating the decision of Hon’ble Supreme Court in the case of Karam Chand Thapar and Brothrs P Ltd. Vs CIT, 83 ITR 899, as the transaction does not fulfil the conditions of Short Term or Long Term Capital gains. KIFS Securities Ltd & Khandwala Integrated Financial Services P. Ltd, ITA Nos.643, 2717, 2882/Ahd/14, 786, 914/Ahd/16,63,1885/Ahd/17 & 932/Ahd/2014 On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of t…

Amadhi Investments Ltd., Ahemedabad vs. ITO - 1(1)(1), Mumbai

In the result, appeal of the assessee is dismissed

ITA 5747/MUM/2013[2006-07]Status: DisposedITAT Mumbai05 Feb 2018AY 2006-07

Bench: Shri Joginder Singh () & Shri G Manjunatha ()

Section 143(3)Section 271Section 271(1)(c)

…nishing inaccurate particulars of income. After considering relevant submissions of the assessee and also by relying on certain judicial precedents including the decision of Hon’ble Supreme Court in the case of Karam Chand Thappar & Bros Pvt Ltd CIT (1971) 83 ITR 899 (SC) observed that the assessee has furnished inaccurate particulars of income in respect of sale and purchase of shares and hence levied u/s 271(1)(c) of the Income-tax Act, 1961 of Rs.19,47,240. 3. Aggrieved by the penalty order, assessee preferred appeal before CIT(A). Before CIT(A), assessee filed elaborate written submissions and also relie…

Mahalaxmi Innovative Services Ltd, Mumbai vs. DCIT Cir 2(2), Mumbai

The appeal of the assessee is partly allowed in light our aforesaid observations

ITA 4856/MUM/2011[2007-08]Status: DisposedITAT Mumbai06 Mar 2017AY 2007-08

Bench: Shri D. Karunakara Rao, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No. 4856/Mum/2011 (निर्धारण वर्ा / Assessment Year: 2007-08) Mahalaxmi Innovative Services Ltd. Dcit Cir 2(2) बिधम/ 1004, 10Th Floor, Maker Chambers-V, Mumbai Nariman Point Vs. Mumbai, स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadcm9810C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) :

For Appellant: Shri Reepal Tralshwala (AR)For Respondent: Shri T.A. Khan (DR)
Section 143(2)Section 143(3)Section 14A

…‘investments' or stock in trade', this cannot be decisive to determine the nature of the transaction, As highlighted in Circular No. 4 dated 15.6.2007 of the Board it has been held by the Hon’bleSupreme Court in the case of Karamchand Thapar& Bros Pvt. Ltd. (83 ITR 899) that the classification by the P a g e | 5 assessee of shares as investment or stock in trade is by no means conclusive, Moreover, in the case of State Bank of Hyderabad vs CIT (151 ITR 703) (AP), the income arising from sale of securities, which was found to be closely connected to the banking business of the State Bank of Hyderabad, was held t…

Karam Chand Thapar and Brothrs P Ltd. v. CIT (83 ITR 899) — Cited in 10 Judgments | BharatTax