Radials International v. ACIT (367 ITR 1)

NARENDRA KUMAR SINGH,NEW DELHI vs. ACIT, CENTRAQL CIRCLE-15, , NEW DELHI

In the result, the appeal of the assessee is dismissed

ITA 12/DEL/2019[2013-14]Status: DisposedITAT Delhi12 Apr 2019AY 2013-14

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2013-14 Shri Narendra Kumar Singh, Vs. Asstt. Commissioner Of C/O- Vivek Bansal, 2Nd Floor, Income Tax, B-3/4, Safdarjung Enclave, Central Circle-15, New Delhi New Delhi Pan :Akmps8087M (Appellant) (Respondent) Appellant By S/Shri I.P. Bansal & Vivek Bansal, Advocates Respondent By Smt. Rinku Singh, Sr.Dr

Section 143(2)Section 143(3)Section 234BSection 50CSection 50C(1)Section 50C(2)(a)

…following judicial pronouncement: ❖ CIT vs Arvind Kumar Jain [2012] 205 Taxman 44 (Delhi)(MAG.); ❖ CIT vs Avery India Ltd. [2002] 255 ITR 485 (Calcutta); ❖ CIT vs Bhatia General Hospital [2018] 405 ITR 24 (Bombay); and ❖ Radials International Vs ACIT [2014] 367 ITR 1 (Delhi) 3.4 The Ld. counsel further submitted that in case of the income under the head profit and gains of the business, the provisions of the section 50C are not applicable. In support of the contention, he relied on the following judicial pronouncement: ❖ CIT vs Glowshine Builders & Developers (P.) Ltd [2018] 405 ITR 540 (Bombay) Para 7 upto p…

SHRI HARSH S. SHAH,,AHMEDABAD vs. THE DY.CIT, CIRCLE-10,, AHMEDABAD

In the result, the appeal of the assessee is allowed

ITA 991/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad22 Sept 2017AY 2010-11

For Appellant: Shri Nimish B. Shah, A.RFor Respondent: Shri Roop Chand, D.R

Section 143(2)Section 143(3)

…was also brought to our notice that the decision of the Delhi bench ITAT in which it was held that gain on sale of shares through the services of portfolio management services will be the business income has been reversed by the hon’ble Delhi High Court vide 367 ITR 1 on 25th April, 2014. We find that Hon’ble Karnatka High Court in the case of CIT vs. Kapur Investment P. Ltd (2015) 234 Taxman 0149 held that profit from investment through portfolio management service either directly or through professionally managed firm, would still remain as profits to be taxed as capital I.T.A No. 991/Ahd/2014 A.Y. 2010-11 Pa…

ACIT 19(3), MUMBAI vs. SACHIN R. TENDULKAR, MUMBAI

In the result, both the appeals filed by the Revenue are dismissed

ITA 3217/MUM/2014[2010-11]Status: DisposedITAT Mumbai25 Jan 2017AY 2010-11

Bench: Shri Mahavir Singh & Shri Ashwani Tanejaassessment Year: 2010-11 & Assessment Year: 2011-12 Acit 19(3), Shri Sachin R. Tendulkar, R.No.305, 3Rd Floor, 19-A Perry Rd, बनाम/ Pirmal Chanbers, Bandra (E) Vs. Parel Mumbai-400050 Mumbai-400012 (Revenue) (Respondent ) P.A. No.Aaapt4135B Revenue By Shri Ta Khan (Dr) Respondent By Shri Jitendra Jian (Ar) सुनवाई क" तार"ख/Date Of Hearing: 28/11/2016 आदेश क" तार"ख /Date Of Order: 25 /01/2017

Section 143(3)Section 14A

…shares by availing services of Portfolio Manager shall amount to business income. In this regard it has been brought to our notice that the aforesaid decision has been reversed by the Hon’ble Delhi High Court in its order passed on 25th April 2014 reported in 367 ITR 1 (Delhi) wherein it has been held by their lordships after considering entire scheme of PMS as well as provisions of law that categorization of the transactions whether giving rise to business income or income from capital gains would not necessarily be depending upon the fact that whether purchase and sale of shares are done with the help of Portfo…

M/S. D.D. MERCHANT BANKERS LTD.,NEW DELHI vs. ACIT,

In the result, the appeal of the assessee is deemed to be allowed for statistical purposes

ITA 4995/DEL/2011[2006-07]Status: DisposedITAT Delhi09 Dec 2016AY 2006-07

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

For Appellant: Shri Prem Nath Monga, AdvocateFor Respondent: Shri Anil Kumar Sharma, Senior DR

…xopp Investment Ltd. – 347 ITR 272 (Del), set aside the matter to the file of the Assessing Officer. He also pointed out that the issue is also covered by the decision of Hon'ble Jurisdictional High Court in the case of Radials International Vs. ACIT – [2014] 367 ITR 1 (Delhi). He stated that the issue may be set aside to the file of the Assessing Officer to be re-examined in the light of the above decisions of Hon'ble Jurisdictional High Court. 5. Learned DR has no objection to the above suggestion of the learned counsel for the assessee. 6. We have considered the submissions of both the sides and have perused…

HERO MOTOCORP LIMITED,NEW DELHI vs. JCIT, NEW DELHI

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR

Section 143Section 143(3)Section 144CSection 92C

…us shares through PMS scheme, with a view to earn optimum return on investment / wealth creation/maximization cannot be treated as income taxable under the head‖ business income‖. r) Recently, the Delhi High Court in the case of Radials International v. CIT: 367 ITR 1 and the Karnataka High Court in the case of CIT v. Kapur Investments Pvt. Ltd.: 234 Taxman 149 has held likewise. Hero MotoCorp Limited Vs. JCIT & DCIT Vs. Hero MotoCorp Ltd. ITA Nos. 1545/Del/2015 and 2424/Del/2015 (AY 2010-11) ITA No. 1609/Del/2016 and 914/Del/2016 (AY 2011-12) Page 203 of 484 s) To the same effect are the following decisions:…

VENKATESH SATYARAJ MYSORE,MUMBAI vs. D.C.I.T. 26(1), MUMBAI

In the result, appeals filed by the assessee are allowed

ITA 2573/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Sept 2016AY 2008-09

Bench: Shri Amit Shukla () & Shri Ashwani Taneja (Acountant Member)

Section 10(4)(ii)Section 144Section 2Section 271(1)(c)Section 8

…e taxed as capital gains as the same will not change the nature of investment, which is in shares, and the law permits it to be taxed as capital gains and not as business income.” 16. It is further noted by us that in the case of Radials International vs ACIT 367 ITR 1 (Del), Hon’ble Delhi High Court held that PMS agreement is merely an agreement for agency and could not be used to infer any 10 I.T.A. No.2573/Mum/2012 intention to make profits; an intention of the assessee should be inferred holistically from conduct of the assessee and circumstances of the transactions. Similarly in the case of Radha Birji Pate…

SMT. LEA ANN KUMAR,NEW DELHI vs. DDIT, NEW DELHI

In the result, both the appeals of the assessees stand

ITA 6067/DEL/2012[2008-09]Status: DisposedITAT Delhi26 Aug 2016AY 2008-09

Bench: Shri Chandra Mohan Garg & Shri L.P. Sahu, [A.Ys : 2008-2009]

For Appellant: Shri A.B. Dial, Sr. AdvFor Respondent: Shri Yogesh Kumar Sharma, Sr. DR

…the decision of the ITAT, Special Bench, Delhi in the case of Suraj Overseas (P) Ltd dated 14.10.2015 submitted that referring to the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of Radials International Vs. ACIT reported at [2014] 367 ITR 1[Delhi], the Hon'ble High Court held that business is of adventure in the nature of trade, purchase and shares with own funds and investment of shares under portfolio management agreement is not disclosing intention to make profit and if shares are held for long time, then profit from sale of shares is not assessable as business income and the s…

KAMAL SHIV KUMAR,NEW DELHI vs. DDIT, NEW DELHI

In the result, both the appeals of the assessees stand

ITA 5362/DEL/2012[2008-09]Status: DisposedITAT Delhi26 Aug 2016AY 2008-09

Bench: Shri Chandra Mohan Garg & Shri L.P. Sahu, [A.Ys : 2008-2009]

For Appellant: Shri A.B. Dial, Sr. AdvFor Respondent: Shri Yogesh Kumar Sharma, Sr. DR

…the decision of the ITAT, Special Bench, Delhi in the case of Suraj Overseas (P) Ltd dated 14.10.2015 submitted that referring to the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of Radials International Vs. ACIT reported at [2014] 367 ITR 1[Delhi], the Hon'ble High Court held that business is of adventure in the nature of trade, purchase and shares with own funds and investment of shares under portfolio management agreement is not disclosing intention to make profit and if shares are held for long time, then profit from sale of shares is not assessable as business income and the s…

VIJAY DAMODARAKURUP CHANDRAN,MUMBAI vs. ITO WD 19(2)(2), MUMBAI

In the result, the Appeal No

ITA 6547/MUM/2010[2006-07]Status: DisposedITAT Mumbai15 Jan 2016AY 2006-07

Bench: Shri N.K.Billaiya & Shri Pawan Singhassessment Year: 2005-06 Shri Vijay Damodarakurup Cit(A) Xix, Chandran, D-6, Nav Monica Chs Mumbai. Ltd, Cst Road, Opp. University Vs. Campus, Kalina, Santacruz (East), Mumbai-400098. Pan: Aacpd3924A (Appellant) (Respondent) Assessment Year: 2006-07 Shri Vijay Damodarakurup Cit(A) Xix, Chandran, D-6, Nav Monica Chs Mumbai. Ltd, Cst Road, Opp. University Vs. Campus, Kalina, Santacruz (East), Mumbai-400098. Pan: Aacpd3924A (Appellant) (Respondent)

For Appellant: Shri Aarti SatheFor Respondent: Shri Pawan Kumar Beerla (DR)

Section 10(33)Section 10(36)Section 111ASection 143(2)Section 94(7)

…ncome from PMS as STCG instead of business income and thus for keeping in view the principle of consistency, the revenue must not take different stand for different AY. 11. The Hon’ble Delhi High Court in Redial International Vs Asst. CIT, reported viz (2014) 367 ITR 1, held : Investment of share under portfolio management agreement and share held for long time , profit from such sale of shares are not assessable as business income. 12. Coordinate bench of ITAT Mumbai in ITA No. 5382/M/2009, titled as ITO Vs Radha Birju Patel also taken a similar view by treating the same as STGC instead if business income, hence…

VIJAY DAMODARAKURUP CHANDRAN,MUMBAI vs. DCIT WD 19(2), MUMBAI

In the result, the Appeal No

ITA 6546/MUM/2010[2005-06]Status: DisposedITAT Mumbai15 Jan 2016AY 2005-06

Bench: Shri N.K.Billaiya & Shri Pawan Singhassessment Year: 2005-06 Shri Vijay Damodarakurup Cit(A) Xix, Chandran, D-6, Nav Monica Chs Mumbai. Ltd, Cst Road, Opp. University Vs. Campus, Kalina, Santacruz (East), Mumbai-400098. Pan: Aacpd3924A (Appellant) (Respondent) Assessment Year: 2006-07 Shri Vijay Damodarakurup Cit(A) Xix, Chandran, D-6, Nav Monica Chs Mumbai. Ltd, Cst Road, Opp. University Vs. Campus, Kalina, Santacruz (East), Mumbai-400098. Pan: Aacpd3924A (Appellant) (Respondent)

For Appellant: Shri Aarti SatheFor Respondent: Shri Pawan Kumar Beerla (DR)

Section 10(33)Section 10(36)Section 111ASection 143(2)Section 94(7)

…ncome from PMS as STCG instead of business income and thus for keeping in view the principle of consistency, the revenue must not take different stand for different AY. 11. The Hon’ble Delhi High Court in Redial International Vs Asst. CIT, reported viz (2014) 367 ITR 1, held : Investment of share under portfolio management agreement and share held for long time , profit from such sale of shares are not assessable as business income. 12. Coordinate bench of ITAT Mumbai in ITA No. 5382/M/2009, titled as ITO Vs Radha Birju Patel also taken a similar view by treating the same as STGC instead if business income, hence…

HITEN PRAVINCHANDRA DALAL,MUMBAI vs. DCIT CIR 14(2), MUMBAI

In the result, appeal filed by the assessee is partly allowed as indicated above

ITA 1068/MUM/2012[2008-09]Status: DisposedITAT Mumbai30 Oct 2015AY 2008-09

Bench: Shri Shailendra Kumar Yadav, Jm & Shri Ramit Kochar, Am

For Respondent: Shri K. Mohandas

…ssee was engaged in the business of finance and films. It made investments in shares through PMS. The Hon'ble Karnataka High Court, following the ratio laid down by the Hon'ble Delhi High Court, in the case of Radicals International vs. CIT reported in (2014) 367 ITR 1 and Circular No. 4/2007 dated 16.06.2007 issued by CBDT held that investment made by assessee in shares in such situation would be termed as income from capital gain. Admittedly, assessee has invested funds through portfolio management services which may deal with shares of assessee so as to derive maximum profits cannot be termed as business of th…

Radials International v. ACIT

Judgments citing Radials International v. ACIT