Case Law Details
Case Name : The Commissioner Of Income Tax Vs M/S Jindal Poly Films Ltd. (Allahabad High Court)
Appeal Number : Income Tax Appeal No.- 143 of 2011
Date of Judgement/Order : 11/05/2017
Related Assessment Year :
Heard Sri Shubham Agrawal, learned counsel for the appellants and Sri Rupesh Jain, learned counsel for the respondent.
The appeal by the Revenue is directed against the order of the Income Tax Tribunal dated 29.10.2010 in respect of the assessment year 2005- 06.
The bone of contention in this appeal is whether the income derived from the sale of equity shares would be business income or a Long Term Capital Gain
The facts as stated in the order of the Tribunal reveal that the equity shares were held by the assessee company since 1988- 89 as a long term investment ie. for a period of more than one year prior to the assessment in question and that the said equity shares were transferable through recognized stock exchange meaning thereby that they were listed shares.
The Government of India Ministry of Finance Department
of Revenue vide Circular No. 6 of 2016 of the Central Board of Direct Taxes 29th February, 2016 referring to the earlier circular No. 4 of 2009 dated 15th June, 2007 has laid down that in order to reduce litigation, the sale of listed shares would be treated as capital gain if they are held by the assessee for a period of more than 12 months immediately preceding the date of these transfers.
In view of above circular and the above admitted fact that the assessee have held that the said equity shares not only for one year but for more than 16 years and that the shares were listed shares, the income derived from their transfer has rightly been treated as Long Term Capital Gain and not as business income.
In view of above, we find no merit in this appeal and is dismissed.
Qualification: CA in Practice
Company: Taxguru / Sandeep Kanoi & Associates
Location: Mumbai, Maharashtra, IN
: 27 Feb 2017 | Total Posts
My Published Posts