Appeal details
Counselvise Citation
23922514 RSA 2012
Assessee PAN
Bench
Appeal Number
Duration Of Justice
7 month(s) 12 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
27-09-2012
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
B
Assessment Year
2007-2008
Appeal Filed On
14-02-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER I.T.A. NO. 239/HYD/2012 A.Y. 2007-08 THE ASST. CIT CIRCLE-6(1) HYDERABAD VS. SRI P.V.S. RAJU HYDERABAD PAN: AGCPP3664R APPELLANT RESPONDENT APPELLANT BY: SMT. AMISHA S. GUPT RESPONDENT BY: SRI A.V. RAGHURAM DATE OF HEARING: 27 .0 9 .2012 DATE OF PRONOUNCEMENT: 27.09.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A), GUNTUR DATED 7.1.2011 FOR ASSESSMENT YEAR 2007-08. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED CIT(A) ERRED BOTH IN LAW AND ON FACTS O F THE CASE. 2. THE LEARNED CIT(A) OUGHT TO HAVE CONSIDERED THAT TH E ISSUE OF TREATMENT OF STCG AS BUSINESS INCOME IS SQUARELY CO VERED IN FAVOUR OF REVENUE IN VIEW OF JURISDICTIONAL HONBLE HIGH COURT ORDER IN ITA NOS. 54, 55 & 137 OF 2011 DATED 27.7.20 11 IN THE ASSESSEE'S OWN CASE FOR A.YS. 2005-06 & 2006-07. 3. THE LEARNED CIT(A) ERRED IN TREATING THE ASSESSEE'S TRANSACTIONS IN PURCHASE AND SALE OF SHARES THAT WERE HELD FOR A PE RIOD OF MORE THAN ONE MONTH AS 'INCOME FROM CAPITAL GAINS'. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. THE LEARNED AR TRIED TO DISTINGUISH THE FACTS OF PRESEN T ASSESSMENT YEAR WITH THE EARLIER ASSESSMENT YEARS 2005-06 AND 2006-07 WHEREIN THE TR IBUNAL AS WELL AS THE JURISDICTIONAL HIGH COURT HELD THAT INCOME ARISING OUT OF PURCHASE AND SALE OF SHARES IS BUSINESS INCOME IN RESPECT OF SHARES HELD FOR A PERIOD OF MORE THAN ONE MONTH AS AGAINST THE CLAIM OF THE ASSESSEE AS 'INCOME FROM C APITAL GAIN'. THE AR ALSO FILED A STATEMENT SHOWING DETAILS OF INVESTMENT MADE IN DIF FERENT COMPANIES FROM 1.4.2006 I.T.A. NO. 239/HYD/2012 SRI P.V.S. RAJU ================== TO 31.3.2007. THOUGH THESE STATEMENTS CONTAIN DATE OF PURCHASE OF SHARES THEY DO NOT CONTAIN DATE OF SALE OF SHARES. FURTHER THESE STATEMENTS WERE NEVER PRODUCED BEFORE THE LOWER AUTHORITIES AS THE CERTIFICATE GIV EN BY THE ASSESSEE'S COUNSEL ITSELF SHOWS THAT IT WAS JUST CULLED FROM ACCOUNTS OF THE ASSESSEE AND FILED BEFORE THE TRIBUNAL ONLY. HENCE, WE ARE NOT GOING TO GIVE ANY CREDIT TO THESE STATEMENTS. FURTHER AS THE ISSUE IS ALREADY SETTLED BY THE JUDG EMENT OF JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE REPORTED IN 340 ITR 75, WHER EIN HELD THAT INCOME ARISING OUT OF PURCHASE AND SALE OF SHARES IS BUSINESS INCOME I N RESPECT OF SHARES HELD FOR A PERIOD OF MORE THAN ONE MONTH AS AGAINST THE CLAIM OF THE ASSESSEE AS 'INCOME FROM CAPITAL GAIN', WE ARE INCLINED TO REVERSE THE ORDER OF THE CIT(A) ON THIS ISSUE AND RESTORE THE ORDER OF THE ASSESSING OFFICER. 4. IN THE RESULT, REVENUE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER, 2012. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 27 TH SEPTEMBER, 2012 TPRAO COPY FORWARDED TO: 1. THE ASST. CIT, CIRCLE - 6(1), 7 TH FLOOR, 'D' BLOCK, IT TOWERS, AC GUARDS, HYDERABAD. 2. SRI PVS RAJU, D. NO. 8 - 2 - 293/82/8/371/I, PLOT NO. 372, JUBILEE HILLS, HYDERABAD. 3. THE CIT(A), GUNTUR 4 . THE CIT - III, HYDERABAD. 5 . THE DR B BENCH, ITAT, HYDERABAD
