Smt. Archana Rakshit Shah, Ahmedabad V. The ACIT, Circle-10, Ahmedabad

ITA 1966/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0384 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-09-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 19-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR
• Assessee Lawyers: S N DIVATIA
• Keywords: Business income; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 1966/AHD/2013 / ASSESSMENT YEAR : 2006-07 SMT. ARCHANA RAKSHIT SHAH, @ ARCHANA DULAR PATEL, SHREE KUNJ, PANCHAVATI, 1 ST LANE, ELLIS BRIDGE, AHMEDABAD PAN : ACPPS 1334 J VS ACIT, CIRCLE-10, AHMEDABAD / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI S.N. DIVATIA, ADVOCATE REVENUE BY : SHRI RAHUL KUMAR, SR DR / DATE OF HEARING : 30/09/2016 / DATE OF PRONOUNCEMENT: 30/09/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-XVI, AHMEDABAD DATED 03.05.2013 FOR AY 2006-07. 2. THE SOLITARY GROUND RAISED IS AS UNDER :- THE ORDER PASSED U/S 250 ON 03.05.2013 FOR AY 2006- 07 BY CIT(A)-XVI, AHMEDABAD UPHOLDING THE STCG OF RS.16,45,749/- ON S ALE OF SHARES AS BUSINESS INCOME IS WHOLLY ILLEGAL, UNLAWFUL AND AGA INST THE PRINCIPLES OF NATURAL JUSTICE. 3. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, CONTENDS THAT SIMILAR ISSUE CAME UP BEFORE THE ITAT IN THE GROUP CASE OF SMT. DEVANGI ALIAS RUPA DIPAK PANCHAL AND OTHERS; AND THE TRIBUNAL VID E ITS CONSOLIDATED ORDER DATED 31.05.2016, FOLLOWING THE CO-ORDINATE B ENCH JUDGMENT IN THE CASE OF SEER FINLEASE PVT LTD IN ITA NOS. 3326, 344 0/AHD/20009, HAS HELD AS UNDER:- 24. IN THE CASES IN HAND ALSO IDENTICAL ALLEGATIO NS HAVE BEEN MADE BY THE REVENUE AUTHORITIES AND SINCE ALL THE ALLEGATIONS H AVE BEEN DISMISSED BY THE CO-ORDINATE BENCH AND HAVE DECIDED THE ISSUE IN FAV OUR OF THE ASSESSEE. WE HAVE NO HESITATION IN FOLLOWING THE FINDING OF THE TRIBUNAL (SUPRA) SMC-ITA NO. 1966/AHD/2013 SMT. ARCHANA RAKSHIT SHAH VS. ACIT AY : 2006-07 2 THE ASSESSEE IN ITS BOOKS OF ACCOUNTS HAS SHOWN THE IMPUGNED SHARES AS INVESTMENT AND NOT AS STOCK-IN-TRADE. THEREFORE , THE ASSESSEES GROUND MAY BE ALLOWED. 4. THE LD. DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF THE AUTHORITIES BELOW. 5. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. RESPECTFULLY FOLLOWING THE CO-ORDINATE BENCH JUDGMENTS IN THE GR OUP CASE OF SMT. DEVANGI ALIAS RUPA DIPAK PANCHAL (SUPRA) AND SEER F INLEASE PVT LTD (SUPRA), THE INCOME FROM SALE OF IMPUGNED SHARES IS HELD AS SHORT TERM CAPITAL GAIN AND THIS GROUND OF THE ASSESSEES APPE AL IS ALLOWED ACCORDINGLY. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 30 TH SEPTEMBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 30/09/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD