Assessee cannot be held to be a trader in shares with respect to delivery basis transaction

ACIT Vs. Mrs. Rajpal Sethi (ITAT Mumbai)– AO in the case of assessee while making the assessment for the assessment year 2004- 05 has accepted the short term capital gain and the long term capital gain on sale of shares vide order dated 22.12.2006 passed u/s 143(3) of the Act, therefore, we are of the view that the assessee’s case is squarely covered in favor of the assessee by the decision of the Tribunal in the case of Shri Satpal Singh Sethi (supra). This being so and in the absence of any distinguishing features or contrary material brought on record by the Revenue, we respectfully following the consistent view of the Tribunal and the ratio of the decision of the Hon’ble Jurisdictional High Court in the aforementioned cases, hold that the ld. CIT(A) was fully justified in directing the AO to accept the appellant’s claim of short term capital gain and long term capital gain on share transactions, where the delivery has been taken or given and Security Transaction Tax has been paid.

INCOME TAX APPELLATE TRIBUNAL, MUMBAI

ITA No. 4325/Mum/2010 – (Assessment Year: 2006- 07)

Assistant Commissioner of Income Tax

V/s

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