Smt. Chandrika H. Shah, Pune V. Assistant Commissioner of Income-tax,

ITA 1581/PUN/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0477 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 13-08-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMITRA BANERJI
• Keywords: Business income; Capital Gains
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 201; 13

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE , BEFORE MS. SUSHMA CHOWLA, JM . / ITA NO. 1 5 81 /PN/201 4 / ASSESS MENT YEAR : 20 07 - 08 SMT. CHANDRIKA H. SHAH, 1100/1, BUDHWAR PETH, C/O NILESH GENERAL STORES, PUNE 411002 . / APPELLANT PAN: A DXPS 2484A VS. THE ASST. COMMISSIONER OF INCOME TAX , CIRCLE - 1(1), PUNE . / RESPONDENT / APPELLANT BY : SHRI NIKHIL PATHAK / RESPONDENT BY : SMT. SUMITRA BANERJI / DATE OF HEARING : 1 9 . 1 0 .201 6 / DATE OF PRONOUNCEMENT: 11 . 1 1 .201 6 / ORDER PER SUSHMA CHOWLA, J M : TH IS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT (A) - 1 , PUNE , DATED 0 3 . 02 .20 1 4 RELATING TO ASSESSMENT YEAR 20 07 - 08 AGAINST ORDER PASSED UNDER SECTION 1 4 3(3) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 2 2 . THE ASSESSEE HAS RAI SED THE FOLLOWING GROUND S OF APPEAL : - 1] THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A.O. IN TAXING 1] THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A.O. IN TAXING THE INCOME OF RS.29,76,435/ - ARISING ON SALE OF SHARES AS BUSINESS INCOME AS AGAINST SHORT TERM CAPITAL GAINS DECLARED BY THE ASSESSEE. 2] THE LEARNED CIT(A) ERRED IN HOLDING THAT THE INCOME A RISING ON SALE OF SHARES WAS TO BE TAXED AS BUSINESS INCOME OF THE ASSESSEE ON THE FOLLOWING GROUNDS A . THE ASSESSEE IS ENGAGED IN THE SYSTEMATIC AND CONTINUOUS ACTIVITY OF TRADING IN SHARES WITH A N INTENTION TO EARN PROFITS AND HENCE, THE SAID ACTIVITY WAS IN THE NATURE OF BUSINESS ACTIVITY. B . THE MAGNITUDE AND FREQUENCY OF TRANSACTIONS IN SHARES WAS QUITE SUBSTANTIAL AND THEREFORE, THE SAME HAD TO BE TREATED AS BUSINESS ACTIVITY. ACTIVITY. C . THE OBJECT OF THE ASSESSEE BEHIND PURCHASING SHARES WAS NOT TO EARN DIVIDEND BUT TO EARN PROFITS ON SALE OF SUCH SHARES. D . THE ASSESSEE HAD UTILISED INTEREST BEARING BORROWED FUNDS FOR PURCHASE OF SHARES AND THUS, THE SAID ACTIVITY OF PURCHASE AND SALE OF SHARES WAS IN THE NATURE OF BUSINESS. 3] THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE INCOME ARISING ON SALE OF SHARES WAS IN THE NATURE OF SHORT TERM CAPITAL GAINS AND HENCE, THERE WAS NO REASON TO TREAT THE SAME AS BUSINESS INCOME OF THE ASSESSEE. 4] THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THAT - 4] THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THAT - A . THE MAGNITUDE AND FREQUENCY OF TRANSACTIONS WAS NOT VERY HIGH AND HENCE, THERE WAS NO REASON TO TREAT THE INCOME ARISING ON SALE OF SHARES AS BUSINESS INCOME OF THE ASSESSEE. B . THE ASSESSEE HAD SHOWN THE SHA RES HELD AS AN 'INVESTMENT' IN HER BALANCE SHEET AND THE INTENTION OF THE ASSESSEE WAS TO HOLD THE SHARES AS AN INVESTME NT ONLY. C . SHARES OF VARIOUS COMPANIES WERE HELD BY THE ASSESSEE FOR A SUBSTANTIAL PERIOD OF TIME WHICH CLEARLY INDICATES THAT THE INTENT ION OF THE ASSESSEE WAS TO HOLD THE SHARES AS AN INVESTMENT AND NOT TO TRADE IN SHARES. TRADE IN SHARES. D . THE ASSESSEE HAS EARNED DIVIDEND FROM INVESTMENTS MADE IN SHARES OF VARIOUS COMPANIES AND THEREFORE, THERE WAS NO REASON TO TAX THE INCOME ARISING ON SALE OF SHARES A S BUSINESS INCOME AS AGAINST THE SHORT TERM CAPITAL GAINS DECLARED BY THE ASSESSEE. E . THE ASSESSEE HAD NOT UTILISED INTEREST BEARING BORROWED FUNDS FOR MAKING INVESTMENTS IN SHARES OF VARIOUS COMPANIES AND THUS, THE INCOME ARISING ON SALE OF SUCH SHARES SH OULD HAVE BEEN TAXED AS SHORT TERM CAPITAL GAINS AND NOT AS BUSINESS INCOME. 5] WITHOUT PREJUDICE TO THE ABOVE GROUNDS, IF AT ALL, THE INCOME ARISING ON ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 3 SALE OF SHARES IS TO BE TREATED AS BUSINESS INCOME OF THE ASSESSEE, THEN THE SHARES HELD BY THE ASSE SSEE AS ON 31.03.2007 MAY BE VALUED AT MARKET VALUE AS AGAINST VALUED AT COST BY THE ASSESSEE. 3. THE ISSUE ARISING IN THE PRESENT APPEAL IS IN RESPECT OF ASSESSABILITY OF GAIN ARISING ON SALE OF SHARES. THE PLEA OF ASSESSEE WAS THAT THE SAME IS TO BE AS SESSED AS INCOME FROM SHORT TERM CAPITAL GAINS, WHEREAS THE REVENUE AUTHORITIES HAVE TAXED THE SAME AS INCOME FROM BUSINESS IN THE HANDS OF ASSESSEE. 4. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION HAD FILED THE RET URN OF INCOME DECLARING TOTAL INCOME OF RS. 19,76,922/ - AFTER SETTING OF CURRENT YEAR LOSSES OF RS. 10,63,136/ - . THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY. THE ASSESSEE WAS FOUND TO HAVE DERIVED INCOME FROM PETTY BEAUTY PARLOR AND HAD ALSO DECLAR ED INCOME FROM SHORT TERM CAPITAL GAINS AND OTHER SOURCES. THE ASSESSEE WAS PARTNER IN TWO SHORT TERM CAPITAL GAINS AND OTHER SOURCES. THE ASSESSEE WAS PARTNER IN TWO PARTNERSHIP FIRMS I.E. VRAJ CONSTRUCTIONS AND YASH DEVELOPERS. THE ASSESSEE HAD DECLARED INCOME FROM SHORT TERM CAPITAL GAINS ON SALE OF SHARES AT RS. 29,76,435/ - . THE ASSESSING OFFICER NOTED THAT THE SHARES AVAILABLE WITH THE ASSESSEE WERE SHOWN AS INVESTMENT. HOWEVER, THE ASSESSEE HAD DEALT IN VARIOUS NUMBERS OF SCRIPS AND THE FREQUENCY OF ACTIVITY OF PURCHASING AND SELLING THE SHARES WAS FOUND TO BE REGULAR AND RECURRING. THE ASSESSING OFFICER WAS OF THE VIEW THAT WHERE THE ASSESSEE HAD BEEN EFFECTING TRANSACTIONS REGULARLY IN ORDER TO ACHIEVE HANDSOME GAINS, THEN THE SAID ACTIVITY BEING CARRIED ON DAY - TO - DAY BASIS IS IN THE NATURE OF BUSINESS. LOOKING AT THE V OLUME, FREQUENCY, CONTINUITY AND REGULARITY OF THE TRANSACTIONS AND WHERE HIGH PROFITS HAD ARISEN TO THE ASSESSEE, THE ASSESSING OFFICER SHOW CAUSED THE ASSESSEE TO EXPLAIN AS TO WHY SHARE TRADING GAIN SHOULD NOT BE CONSIDERED AS ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 4 BUSINESS INCOME AND TAXED ACCORDINGLY, IN HIS HANDS. THE ASSESSEE IN TURN, FILED DETAILED REPLY, WHICH WAS REJECTED BY THE ASSESSING OFFICER AS THE ASSESSEE WAS FOUND TO HAVE BEEN PURCHASING AND SELLING UNITS IN SYSTEMATIC MANNER. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE DUR ING THE YEAR UNDER CONSIDERATION HAD PURCHASED TOTAL NUMBER OF SHARES 84,151 AGAINST WHICH THE NUMBER OF SHARES SOLD DURING THE YEAR WERE 62,190. THE ASSESSING OFFICER HAS TABULATED THE DETAILS OF TRANSACTION UNDER PARA 4.8 AT PAGE 5 OF THE ASSESSMENT ORD ER AND SINCE THE ASSESSEE HAD SOLD 62,190 NUMBER OF SHARES IN JUST 21 DAYS, THE ASSESSING OFFICER OBSERVED THAT THE FREQUENCY OF TRANSACTIONS AND THE SUBSTANTIAL NATURE ESTABLISHED THAT IT WAS ENGAGED IN BUSINESS ACTIVITY AND HENCE, THE INCOME WAS ASSESSED AS INCOME FROM BUSINESS. 5. THE CIT(A) UPHELD THE ORDER OF ASSESSING OFFICER RELYING ON SEVERAL JUDICIAL DECISIONS AND BECAUSE OF FREQUENCY OF SHARES. THE CONTENTION OF THE ASSESSEE THAT SOME OF SHARES WERE SHOWN AS INVESTMENT IN THE PRECEDING YEAR, HAVE BEEN SOLD DURING THE YEAR, WAS NOT ACCEPTED BY THE CIT(A). THE NEXT CONTENTION OF ASSESSEE THAT THE LONG TERM CAPITAL GAINS ARISING ON SALE OF SHARES HAS BEEN ACCEPTED AND HENCE, NO JUSTIFICATION FOR ACCEPTING SHORT TERM CAPITAL GAINS, WAS ALSO NOT ACCEPTED BY THE CIT(A). 6. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 7. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE DETAILS OF GAINS ARISING ON SALE OF SHARES ARE TABULATED AT PAGE 13 OF THE PAPER BOOK. ATTEN TION WAS DRAWN TO THE SAID LIST OF SHARES AND IT WAS POINTED OUT THAT IN ALL, THE ASSESSEE H AD TRANSACTED IN 20 COMPANIES. HE FURTHER ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 5 POINTED OUT THAT MAJOR TRANSACTIONS WERE IN THE SHARES OF CIPLA LTD., WHICH WERE PURCHASED IN THE PRECEDING YEAR AND WERE SOLD DURING THE YEAR UNDER CONSIDERATION. THE SAID SHARES WERE SHOWN AS INVESTMENT AND THE ASSESSEE OUT OF TOTAL GAIN OF RS.29.76 LAKHS HAD DECLARED GAIN ON THE SALE OF SHARE S OF CIPLA LTD. OF ABOUT RS.23 LAKHS . HE FAIRLY ADMITTED THAT IN RESPECT OF SR. NO.18 I.E. SHARE S OF I BULLS AND SR.NO.20 I.E. ASTRAMIC, THE TRANSACTIONS WERE WITHOUT DELIVERY OF SHARES AS THEY WERE COMPLETED WITHIN ONE DAY OF PURCHASE OF SHARES AND HENCE, THE SAID GAIN IS TO BE ASSESSED AS SPECULATIVE PROFITS. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE CIT(A) RELIED ON THE RATIO S LAID DOWN IN AJINKYA ELECTROMELT PVT. LTD. VS. ACIT IN ITA NO.1519/PN/2009 RELATING TO ASSESSMENT YEAR 2005 - 06, ORDER DATED 30.07.2010 AND IN ACIT VS. BLUE MOON SECURITIES PV T. LTD. IN ITA NO.1019/PN/2007, RELATING TO ASSESSMENT YEAR 2004 - 05, ORDER DATED 23.07.2010 . HE FURTHER POINTED OUT THAT EARLIER ORDER OF TRIBUNAL IN ACIT VS. BLUE MOON SECURITIES PVT. LTD. (SUPRA) WAS RECALLED AND SUBSEQUENTLY, THE INCOME WAS HELD TO BE INCOME FROM SHORT TERM CAPITAL GAINS AND HENCE, THE RELIANCE BY THE CIT(A) ON THE SAID DECISION IS MISPLACED. HE STRESSED THAT WHERE MAJOR SHARES SOLD BY THE ASSESSEE WERE SHOWN AS INVESTMENT AS ON CLOSE OF PRECEDING YEAR, THEN THE GAIN ARISING ON SALE OF SAID SHARES IN CURRENT YEAR WOULD BE TAXABLE AS INCOME FROM CAPITAL GAINS AND NOT AS BUSINESS INCOME. IN THIS REGARD, RELIANCE WAS PLACED ON THE RATIO LAID DOWN BY MUMBAI BENCH OF TRIBUNAL IN JANAK S. RANGWALLA VS. ACIT (2007) 11 SOT 627 . THE SECOND ASP ECT POINTED OUT BY THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE WAS THAT THE BORROWED FUNDS WERE NOT UTILIZED FOR MAKING THE ABOVE SAID INVESTMENTS AND HENCE, IT CANNOT BE SAID THAT THE ASSESSEE WAS ENGAGED IN BUSINESS ACTIVITY. ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 6 8. THE LEARNED D EPARTMENTAL REPRESENTATIVE FOR THE REVENUE ON THE OTHER HAND, PLACED RELIANCE ON THE ORDER OF CIT(A) FROM PARA 4.3.1 ONWARDS. 9. ON PERUSAL OF RECORD AND AFTER HEARING BOTH THE LEARNED AUTHORIZED REPRESENTATIVES, THE ISSUE RAISED FOR ADJUDICATION IS THE HEAD UNDER WHICH THE GAIN ARISING ON SALE OF SHARES IS TO BE ASSESSED IN RESPECT OF GAIN AMOUNTING TO RS.29,76,435/ - . THE ASSESSEE IN ADDITION TO THE INCOME FROM SHORT TERM CAPITAL GAINS, THE ASSESSABILITY OF WHICH IS IN DISPUTE IN THE PRESENT APPEAL, HA D ALSO DISCLOSED INCOME FROM LONG TERM CAPITAL GAINS TO THE EXTENT OF RS. 60,495/ - . THE ASSESSEE WAS ENGAGED IN SALE AND PURCHASE OF SHARES IN THE CURRENT YEAR AS WELL AS IN PRECEDING YEAR S . THE INCOME DECLARED BY THE ASSESSEE IN THE PRECEDING YEAR S HAD B EEN ACCEPTED AS SUCH ; ON THE OTHER HAND, THE INCOME DECLARED ON ACCOUNT OF LONG TERM CAPITAL GAINS OF RS.60,495/ - HAS BEEN ACCEPTED IN THE HANDS OF ASSESSEE FOR THE INSTANT ASSESSMENT YEAR BUT THE INCOME SHOWN BY THE ASSESSEE AT RS.29,76,435/ - UNDER THE HE AD INCOME FROM SHORT TERM CAPITAL GAINS HAS BEEN ASSESSED AS INCOME FROM BUSINESS. THE CASE OF REVENUE IN THE PRESENT APPEAL IS THAT THE ASSESSEE WAS ENGAGED IN FREQUENT SALE AND PURCHASE OF SHARES AND HAD THOUGH DEALT IN WITH LESS NUMBER OF SHARES BU T THE QUANTITY, VOLUME AND PERIODICITY OF TRANSACTION WAS HIGH AND AS PER THE ASSESSING OFFICER, IT WAS ORGANIZED BUSINESS ACTIVITY, HENCE, THE GAIN ARISING THEREFROM IS TO BE ASSESSED AS INCOME FROM BUSINESS. THE ASSESSEE HAS PLACED ON RECORD THE DETAI LS OF SHARES DEALT IN BY HER DURING THE YEAR, AGAINST WHICH IT HAD DECLARED SHORT TERM CAPITAL GAINS AT PAGE 13 OF THE PAPER BOOK. OUT OF TOTAL GAIN OF RS.29.76 LAKHS, MAJOR GAIN ON SALE OF SHARES IS FROM SHARES OF CIPLA LTD. THE ASSESSEE HAD PURCHASED 1 000 SHARES ON 09.06.2005 ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 7 FOR RS.2,94,763/ - WHICH WERE SOLD ON 04.04.2006 AT RS.6,93,427/ - , RESULTING IN GAIN OF RS.3,98,665/ - . FURTHER, THE ASSESSEE PURCHASED ANOTHER LOT OF 5000 SHARES ON 09.06.2005 ITSELF FOR RS.14,73,813/ - , WHICH WERE SOLD ON 03.04.200 6 FOR RS.34,28,966/ - , RESULTING IN GAIN OF RS.19,55,153/ - . ADMITTEDLY, THE SHARES OF CIPLA LTD. WERE PURCHASED IN THE PRECEDING YEAR AND THE ASSESSEE HAD DECLARED THE SAME AS INVESTMENT AS ON 31.03.2006. THE SAID INVESTMENT IN SHARES WAS SOLD DURING THE FINANCIAL YEAR 2006 - 07 AND THE GAIN ARISING TO THE EXTENT OF ABOUT RS.23 LAKHS WAS DECLARED BY THE ASSESSEE AS SHORT TERM CAPITAL GAINS. THERE ARE OTHER SHARES ALSO WHICH WERE BOUGHT BY THE ASSESSEE IN THE PRECEDING YEAR AND WERE SOLD DURING THE YEAR . AL L THOSE SHARES ALSO WERE SHOWN AS INVESTMENT AS ON 31.03.2006. SOME OF THE SHARES WERE PURCHASED BY THE ASSESSEE DURING THE YEAR ITSELF AND WERE HELD FOR SHORT DURATION AND THE ASSESSEE HAD DECLARED PROFIT / LOSS ON SUCH TRANSACTIONS. AS PER LIST, ONE SH ARE OF ESSAR STEEL WAS HELD FOR LESS THAN EIGHT DAYS ON WHICH THE GAIN WAS OF RS. 11,060/ - . IN THE LIST ITSELF, THERE ARE TWO TRANSACTIONS I.E. PURCHASE AND SALE OF SHARES OF I BULLS AND ASTRAMIC, WHICH WERE HELD FOR LESS THAN ONE DAY, WHERE THE GAIN WAS R S. 1,10,633/ - AND LOSS OF RS.1,18,030/ - . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE FAIRLY ADMITTED THAT IN THE ABSENCE OF DELIVERY OF SHARES AND SINCE THE SHARES BOUGHT ON THE PREVIOUS DAY WERE SOLD ON THE NEXT DAY MAY BE ASSESSED AS INCOME F ROM BUSINESS. IN RESPECT OF BALANCE SHARES WHERE THE PERIOD OF HOLDING WAS MORE, THE PLEA OF ASSESSEE WAS THAT THE SAME ARE TO BE ASSESSED AS INCOME FROM SHORT TERM CAPITAL GAINS. THE CASE OF REVENUE ON THE OTHER HAND, WAS THAT BECAUSE OF REPEATED TRA NSACTIONS IN SALE AND PURCHASE OF SHARES, THE ASSESSEE WAS ENGAGED IN SYSTEMATIC ACTIVITY OF PURCHASE AND SALE OF SHARES WHICH WAS AKIN TO CARRY ING ON OF BUSINESS AND HENCE, GAIN HAD TO BE ASSESSED AS INCOME FROM BUSINESS. ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 8 THERE IS NO MERIT IN THE SAID PLEA OF REVENUE KEEPING INTO CONSIDERATION THE TOTALITY OF THE FACTS AND CIRCUMSTANCES . 10. WHERE MANY OF SHARES WERE INVESTED INTO BY THE ASSESSEE IN PRECEDING YEAR AND THE SAME WERE ACCEPTED AS INVESTMENT MADE BY THE ASSESSEE AS ON 31.03.2006, ONCE TH E SAID INVESTMENT IS SOLD BY THE ASSESSEE, THEN THE GAIN ARISING THEREFROM IS TO BE ASSESSED AS INCOME FROM SHORT TERM CAPITAL GAINS AND NOT AS INCOME FROM BUSINESS. IN RESPECT OF OTHER SHARES WHICH WERE BOUGHT DURING THE YEAR AND WERE SOLD BY THE ASS ESSEE AFTER HOLDING FOR CERTAIN DURATION, THE ASSESSABILITY OF GAIN IS TO BE DECIDED KEEPING IN MIND THE INTENTION OF ASSESSEE. WHERE THE ASSESSEE HAS REPEATEDLY INVESTED IN SHARES, MAY BE, THE QUANTITY WAS HIGHER OR THE PERIODICITY OF TRANSACTIONS WERE M ORE, DOES NOT DECIDE THE NATURE OF ACTIVITY TO BE A BUSINESS. WHERE THE INTENTION OF ASSESSEE WAS TO MAKE INVESTMENT, WHEREIN THE DELIVERY OF SHARES WERE TAKEN BY THE ASSESSEE AND WAS THEN ON APPRECIATION SOLD IN THE OPEN MARKET, THEN GAIN ARISING ON SUCH INVESTMENTS IS TO BE ASSESSED AS INCOME FROM SHORT TERM CAPITAL GAINS AND NOT AS INCOME FROM BUSINESS. ACCORDINGLY, THE ORDER OF CIT(A) IS REVERSED IN THIS REGARD. FURTHER, IN RESPECT OF SHARES OF I BULLS AND ASTRAMIC, THE INCOME IS ASSESSABLE AS SP ECULATION BUSINESS SINCE THE ASSESSEE HAD NOT TAKEN THE DELIVERY OF SHARES. ACCORDINGLY, THE ASSESSING OFFICER IS DIRECTED TO RE - COMPUTE THE INCOME IN THE HANDS OF ASSESSEE. HOWEVER, IN RESPECT OF BALANCE SHARES, THE SAME ARE DIRECTED TO BE ASSESSED AS INCOME FROM SHORT TERM CAPITAL GAINS. THE CIT(A) HAD PLACED RELIANCE ON THE RATIO LAID DOWN BY THE PUNE BENCH OF TRIBUNAL IN ACIT VS. BLUE MOON SECURITIES PVT. LTD. (SUPRA) , WHICH HAS BEEN RECALLED AND THEREAFTER, HELD THE SAME AS INCOME FROM SHORT TERM CAPITAL GAINS AND HENCE, THE RELIANCE BY THE ITA NO. 15 81 PN/20 1 4 S MT. CHANDRIKA H. SHAH 9 CIT(A) ON THE SAID DECISION IS MISPLACED . ACCORDINGLY, I FIND NO MERIT IN THE ORDER OF CIT(A) AND THE SAME IS REVERSED. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED. 1 1 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THIS 11 TH DAY OF NOVEMBER , 201 6 . SD/ - (SUSHMA CHOWLA) / JUDICIAL MEMBER / PUNE ; DATED : 11 TH NOVEMBER , 201 6 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESP ONDENT; 2. / THE RESP ONDENT; 3. ( ) / THE CIT(A) - 1 , PUNE ; 4. / THE CIT - I , PUNE ; 5. 6. , , , - / DR SMC , ITAT, PUNE; / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE