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Showing contexts for: Intraday in Surjit Kaur Uberoi, Kolkata vs Acit, Cir-29, Kolkata, Kolkata on 7 March, 2018Matching Fragments
Out of the long term capital gain the AO treated Rs. 64,44,808/- as short term capital gain as the appellant did not produce the relevant details. The AO called for the information u/s 133(6) from the broker and on the basis of information so obtained the AO found that the appellant had total purchases in the relevant financial year for intraday and delivery transactions of Rs. 117,20,05,213/- and the corresponding Sales of Rs. 120,60,96,443/-. The AO has observed that the purchase and sale of these shares were more of adventure in nature of trade rather than investment. The AO has further increased the value of the closing stock by the value shown by the share broker in his books; the net addition on this point was Rs. 17,95,381/-. The AO has further added Rs. 13,83,500/- as the stock of NIFTY shown in the balance sheet but not shown by the broker. Additionally, the AO calculated the business income from intraday transactions in the shares at Rs. 63,82,744/-. It is seen that the transactions obtained from the broker u/s 133(6) included the transactions on which the appellant has claimed long term or short term capital gain. It is further seen that in absence of details the treatment of the gain as short term or long term is without any basis. It has been observed by the AO that the frequency and volume of transactions in shares make the activity and enterprise of the nature of trade rather than investment. In view of this the assessment order is cancelled. The AO is directed to compute the income from trading in shares as business income and ignore any claim of short or long term capital gain. For this computation, the AO is directed to take opening stock at Rs. 5,91,73,606/-, purchases of Rs. 117,20,05,213/- closing stock of Rs. 3,10,28,404/- and sales of Rs. 120,60,96,443/- the values as obtained from broker u/s 133(6) except the value of closing stock which has to be as per balance sheet of the appellant. The AO is directed to allow the security transaction tax (STT) paid as deduction from the income so computed.