PLASTI SURGE INDUSTRIES PVT.LTD., Nagpur V. ADDITIONAL COMMISSIONER OF INCOME TAX, Amaravati

ITA 80/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9638 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 12-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARI
• Keywords: Business income

Judgement Text

ITA NO. 80 / NAG/2010 PLASTI SURGE INDUSTRIES PVT. LTD AMARAVATI IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , NAGPUR BEFORE: SHRI P.K. BANSAL , ACCOUNTANT MEMBER AND SHRI D.T. GARASIA , JUDICIAL MEMBER ITA NO. 80 / NAG / 20 10 ASSESSMENT YEAR : 200 7 - 0 8 PLASTI SURGE INDUSTRIES PVT. LTD. AMARAV ATI VS. ACIT, AMARAVATI RANGE AMARAVATI (APPELLANT) (RESPONDENT) PAN NO.AAACP 9678A APPELLANT BY: SHRI K.P. DEWANI, ADVOCATE RESPONDENT BY: DR. MILIND BHUSARI, CIT(DR) DATE OF HEARING: 11.10.12 DATE OF PRONOUNCEMENT: 19.10.12 ORDER PER P.K. BANSAL, A CCOUNTANT MEMBER: - THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF CIT(A) - II, NAGPUR DATED 25/2/2010 FOR ASSTT. YEAR 2007 - 08. THE ASSESSEE HAS SUBMITTED CONCISE REVISED GROUNDS OF APPEAL COPY OF WHICH IS PROVIDED TO CIT (DR). THE CONCISE RE VISED GROUNDS OF APPEAL ARE AS UNDER: 1) THE LEARNED A.O. ERRED IN HOLDING THAT SURPLUS ARISING ON SALE OF SHARES AT RS.9,99,126/ - IS ASSESSABLE AS BUSINESS INCOME AS AGAINST CLAIMED BY ASSESSEE TO BE ASSESSED UNDER THE HEAD CAPITAL GAINS. 2. IN GROUND NO.1 ASSESSEE HAS CHALLENGED THE ACTION OF A.O. AND ASSESSING SURPLUS ARISING ON SALE OF SHARES AS BUSINESS INCOME AS AGAINST SHOWN IN THE RETURN UNDER THE HEAD CAPITAL GAIN . THE A.O. HAS HELD THAT FREQUENCY IN TRANSACTIONS IN THE CASE OF ASSESSEE BEING LAR GE INCOME ARISING ON SALE OF SHARES IS LIABLE TO TAXED IS BUSINESS INCOME AND NOT CAPITAL GAIN AS CLAIMED. THE ISSUE IN DISPUTE IS SIMILAR TO THAT IN ASSTT. YEAR 2006 - 07 IN ITA NO.79/NAG/2010 AT GROUND NO.8. WE HAVE DECIDED THE APPEAL OF ASSESSEE FOR AS STT. YEAR 2006 - 07 AND FOLLOWING THE DECISION IN APPEAL IN ITA NO.79/NAG/2010 FOR ASSTT. YEAR 2006 - 07 WE DIRECT THE A.O. TO ASSESS ITA NO. 80 /NAG/2010 PLASTI SURGE INDUSTRIES PVT. LTD AMARAVATI 2 SURPLUS ARISING ON SALE OF SHARES OF RS.9,99,126/ - AS CAPITAL GAIN AND NOT AS BUSINESS INCOME. GROUND OF APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 19.10 .20 1 2 SD/ - SD/ - ( D.T. GARASIA ) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS NAGPUR DATED 1 9 TH OCTOBER , 20 1 2 COPY TO 1 PLASTI SURGE INDUSTRIES PVT. LTD., S IDHARTHA BHAVAN, MORSHI ROAD, AMARAVATI, C/O M/S. DEWANI BROS., ADVOCATES, 1 - AJANTA CHHINDWARA ROAD, NAGPUR - 440 013 2 ACIT, AMARAVATI RANGE, AMARAVATI 3 THE CIT - III , NAGPUR 4 THE CIT (A) , NAGPUR 5 THE DR, ITAT, NAGPUR 6 GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL NAGPUR