S.28(i): Business income-Capital gains-Sale of shares-No material considered to verify whether shares held as
investment or stock-in-trade--Matter remanded. (S.45)
The assessee sold certain shares and offered for taxation the resultant profit twice, that is, a sum of Rs. 66.57 lakhs as business income and long-term capital gains at Rs. 63.10 lakhs. The Assessing Officer deleted the long-term capital gains from inclusion in the total income allowing as business income to continue. The claim of the assessee was that the converse should be done. The Commissioner (Appeals) upheld the assessment order observing that no material was placed before the Assessing Officer or him to prove that the assessee's claim was on account of investment in shares resulting in long-term capital gains and not business income. On appeal the Tribunal held that no material had been considered or referred to verify whether such shares were held as investment or stock-in-trade. The matter was to be restored to the file of the Assessing Officer to determine whether such shares were held by the assessee as stock-in-trade or investment. If such verification showed that the shares were held as investment, the income from their transfer should be considered under the head "Capital gains", if not as "Business income". Matter remanded (A. Y.:2003-2004,2004-2005)
No comments:
Post a Comment