Itxa/550/2011 Of The Commissioner Of Income Tax - 4 Mumbai v. Axis Capital Markets India Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.550 OF 2011 The Commissioner of Income Tax-4, Mumbai ..Appellant. V/s. Axis Capital Markets (India) L.td. ..Respondent. Mr. Vimal Gupta for the appellant. Mr. Prakash Shah with Jas Sanghavi i/b. PDS Legal for the respondent. CORAM : J.P. DEVADHAR AND A.R. JOSHI, JJ. DATED : 13TH JANUARY, 2012 P.C. :- 1.Whether the ITAT was justified in holding that the profit on sale of shares amounting to Rs.41,78,910/- was assessable as long term capital gains, is the question raised in this appeal. 2.The ITAT in para 15 of its judgment has recorded a finding of fact that in the assessment year in question i.e. AY 2004-05 there was no purchase of shares and the shares sold in the assessment year in question were shares which were purchased in the earlier years and held as investment. Therefore, profits on sale of shares as investment for more than the specified period, were liable to be assessed as long term capital gains. Moreover, the ITAT has recorded a finding of fact that in the subsequent assessment years, the profits arising from sale of shares held as investment have been assessed as long term capital gains. In this view of the matter, in the assessment year in question, the finding of the ITAT that profits arising from the sale of shares are liable to be taxed as long term capital gains cannot be faulted. In the result, the appeal is dismissed with no order as to costs. (A.R. JOSHI, J.) (J.P. DEVADHAR, J.)