Principal Commissioner of Income-tax-3 v. Janak Niranjan Shah
[Citation -2017-LL-0607-116]

Citation 2017-LL-0607-116
Appellant Name Principal Commissioner of Income-tax-3
Respondent Name Janak Niranjan Shah
Relevant Act Income-tax
Date of Order 07/06/2017
Judgment View Judgment
Keyword Tags share transaction • question of law • sale of share • capital gain • income from business

O/TAXAP/356/2017 ORDER IN HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 356 of 2017 PRINCIPAL COMMISSIONER OF INCOME TAX-3 Appellant(s) Versus JANAK NIRANJAN SHAH Opponent(s) Appearance: MRS MAUNA M BHATT, ADVOCATE for Appellant(s) No. 1 CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE BIREN VAISHNAV Date : 07/06/2017 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) Revenue has challenged judgement of Income Tax Appellate Tribunal dated 20.6.2016 raising following question for our consideration: Whether Appellate Tribunal has erred in facts and law by treating profit from sale of share transaction as capital gain as against business income in respect of frequent transactions in buying and selling shares? issue pertains to treatment to be given to sale proceeds of shares. Whether same should be treated as capital gain or business income? CIT (Appeals) as well as Tribunal both held that Page 1 of 2 HC-NIC Page 1 of 2 Created On Wed Feb 21 09:46:09 IST 2018 O/TAXAP/356/2017 ORDER assessee was correct in treating gain as capital gain and not as business income. While confirming decision of CIT (Appeals), Tribunal inter alia observed that mere frequency of transactions would not mean that assessee was in trading of shares. It was further observed that in past Revenue had accepted assessee's stand that he was investor in shares. In present year, assessee had not changed position. Tribunal rejected Revenue s appeal. We do not find any reason to interfere. No question of law arises. Tax Appeal is dismissed. (AKIL KURESHI, J.) (BIREN VAISHNAV, J.) SMITA Page 2 of 2 HC-NIC Page 2 of 2 Created On Wed Feb 21 09:46:09 IST 2018 Principal Commissioner of Income-tax-3 v. Janak Niranjan Shah
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