ASST CIT 16(2), MUMBAI V. RAVI BALDEVRAJ CHADHA, MUMBAI

ITA 7160/MUM/2013

• Counselvise Citation: 716019914 RSA 2013
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 06-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Keywords: Business income; Rule of consistency

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.7160/M/2013 ASSESSMENT YEAR: 2010-11 ASSISTANT COMMISSIONER OF INCOME TAX 16(2), 2 ND FLOOR, MATRU MANDIR, TARDEO ROAD, MUMBAI 400 007 VS. SHRI RAVI BALDEVRAJ CHADHA, 4 TH FLOOR, ORICON HOUSE, K. DUBHASH ROAD, FORT, MUMBAI 400 023 PAN: ACTPC 2390Q (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI HITEN VASANT, A.R. REVENUE BY : SHRI LOVE KUMAR, D.R. DATE OF HEARING : 06.05.2015 DATE OF PRONOUNCEMENT : 30.06.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 16.09.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2010-11. 2. THE SHORT ISSUE INVOLVED IN THIS CASE AS TO WHET HER THE INCOME EARNED BY THE ASSESSEE FROM THE SALE OF PURCHASE OF SHARES IS TO BE TREATED AS SHORT TERM CAPITAL GAINS FOR BUSINESS INCOME. THE LD. CIT(A), AFTER CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES OF THE CASE RELYING UPON THE DECISION OF HIS PREDECESSOR IN THE EARLIER ASSESSMENT YEAR I.E. A.Y . 2008-09 AND CONSIDERING THE NATURE OF TRANSACTIONS, SHARE HOLDING ETC., HEL D THAT THE INCOME OF THE ASSESSEE FROM THE SALE AND PURCHASE OF SHARES IS TO BE TREATED AS SHORT TERM CAPITAL GAINS. ITA NO.7160/M/2013 SHRI RAVI BALDEVRAJ CHADHA 2 3. BEFORE US, THE LD. A.R. OF THE ASSESSEE HAS BROU GHT OUR ATTENTION TO THE DECISION OF THE TRIBUNAL IN THE OWN CASE OF THE ASS ESSEE FOR EARLIER ASSESSMENT YEAR 2008-09 PASSED IN ITA NO.1673/M/2012 DATED 19. 02.2014 WHEREIN THE TRIBUNAL, AFTER CONSIDERING THE TREATMENT OF SHARES RECORDED BY THE ASSESSEE IN ITS BOOKS OF ACCOUNT; VOLUME AND FREQUENCY OF TRANS ACTIONS; PROPORTION OF OWN CAPITAL EMPLOYED; THE AVERAGE TURNOVER OF FUNDS ETC . AND FINDING THAT THERE WERE NO REPETITIVE TRANSACTIONS ETC., HAS HELD THAT THE INCOME FROM SALE OF SHARES WAS TO BE TREATED AS CAPITAL GAINS. THE LD. A.R. OF THE ASSESSEE HAS FURTHER STATED THAT THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE CASE FOR THE YEAR UNDER CONSIDERATION. THE LD. D.R. ALSO COULD NOT BRING BEFORE US ANY NEW FACT OR CASE LAW WHICH MAY JUSTIFY DEPARTURE FROM THE FINDING OF THE TRIBUNAL GIVEN IN THE CASE OF THE ASSESSEE IN THE EARLIER ASSESSMENT YEAR I.E. A.Y. 2008-09. 4. FOLLOWING THE PRINCIPLE OF CONSISTENCY, THE FIND ING OF THE LD. CIT(A) TREATING THE INCOME OF THE ASSESSEE FROM SALE AND P URCHASE OF SHARE AS SHORT TERM CAPITAL GAINS IS HEREBY ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS THER EFORE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.06.2015. SD/- SD/- (R.C. SHARMA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30.06.2015. * KISHORE, SR. P.S. ITA NO.7160/M/2013 SHRI RAVI BALDEVRAJ CHADHA 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.