Consistent treatment made by assessee of share transactions cannot be disturbed by revenue

CA Saurabh Chokhra

Brief of the case:

The ITAT Bench Jaipur in the above cited case held that as per CBDT circular 6/2016 dated 29.02.2016 , if the assessee has treated the securities as investment and not as stock in trade earlier  years,the revenue is not permitted to take a contrary view in the present year to claim  that the security is stock in trade

Facts of the case:

1. Assessee filed his return of income declaring total income of Rs. 85,86,760/-. During the course of assessment proceedings, the AO observed that the assessee claimed investment activity and shown short term capital gain from share transaction of Rs 73,70,214/-.

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