|CORAM:||Laliet Kumar (JM), T. R. Meena (AM)|
|SECTION(S):||28, 45, 48|
|CATCH WORDS:||Business profits, capital gains, Profit on sale of shares|
|DATE:||March 18, 2016 (Date of pronouncement)|
|DATE:||April 18, 2016 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|In view of CBDT Circular No. 6/2016 dated 29.02.2016, if assessee has consistently shown shares as an “investment” and offered gains as capital gains, AO is not entitle to urge that the same constitutes “stock-in-trade” and assess gains as business profits on grounds that there were substantial and frequent transactions and motive was to earn profit and holding period of such shares was very short|
Since the assessee has treated the securities as investment and not as stock in trade in all the years, therefore, in view of the CBDT Circular No. 6/2016 dated 29.02.2016, the revenue is not permitted to take a contrary view in the present year and claimed that the security is stock in trade and, therefore, the profit/gain caused to the assessee be treated as business income. In our view, there is no merit in the contention of the revenue and is deserves to be dismissed in view of the circular
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I think AOs and the revenue need to undergo proper training; else they would waste the court time as also executive time and money of the govt as also tax payers is very much obvious; it is like we talk we are economically better trained; but in fact we were much better off beyween 1913 and 1950; pls read my article on wordpress i have posted after properly studying where PC Mahalanobis and Nehru went wrong as per the reliable statistics; our statistics is as bad as Mandal commission statistics; which is making a lot to claim more and more reservations with their own fake statistics, like CM Fadnavis saying in TAC that fake caste-certificated 10 lakh fellows in public servants shd be allowed to continue in the service, such wise governments, like union govt is so wise to destabilize the duly elected Utranchal govt, by saying they have right to interfere in state elected govt affairs…so bad is the country is moving, only if God has any kindness towards people He need to do the needful!