Income Tax Appellate Tribunal - Delhi
Mahesh Chandra Agarwal, New Delhi vs Acit, New Delhi on 13 October, 2017
31 ITA.No.1064/Del.2010 Shri Mahesh Chandra Agarwal, New Delhi.
material to show that the assessee had changed its business, and that it was not dealing with shares, and that the shares were kept exclusively for the investment purpose, the Tribunal was correct in concluding that the gains were assessable as business income."
8. Considering the facts of the case in the light of above decisions, it is clear that shares were purchased with a view to sell them at a profit and in fact, those shares were sold within the same accounting year, the conduct of the assessee was not to hold them as investment and earn some interest but to trade in shares. It was clear from the frequency and nature of transactions in shares. In the absence of any material to show that assessee had made investments only, the authorities below were correct in concluding that gains were assessable as business income.
9. Learned Counsel for the Assessee, however, relied upon the decision in the case of Rohit Anand (supra), in which assessee had demonstrated that his intention was never to trade in shares. In the case of Vinod N. Shah (supra) it was found that on an average there was only 3-4 cases of purchase and sale of shares during a 32 ITA.No.1064/Del.2010 Shri Mahesh Chandra Agarwal, New Delhi.
month. These decisions, therefore, would not support the case of the assessee.
10. In view of the above discussion, we are of the view that the authorities below have rightly assessed the income from "profits and gains of business as from shares" and accordingly, the appeal of the assessee stands dismissed.
11. In the result, appeal of the assessee is dismissed.
Order pronounced in the open Court.
Sd/- Sd/-
(L.P. SAHU) (BHAVNESH SAINI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Delhi, Dated 13th October, 2017
VBP/-
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT 'E' Bench, Delhi
6. Guard File.
// FIT FOR PUBLICATION //
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(L.P.SAHU) (BHAVNESH SAINI) //By Order//
A.M. J.M.
Asst. Registrar : ITAT Delhi Benches :
Delhi.