CIT Vs. CENTRAL NEWS AGENCY PVT. LTD.

JUDGEMENT

(1.) THE appeal pertaining to the assessment year 2005 -06, raises the following substantial question of law:

(2.) THE brief facts of the matter as taken from the Assessment Order are that the respondent assessee, at the relevant time, was engaged in the business of retail trade in periodicals and books including subscription agents for Indian and Foreign Periodicals. The respondent assessee a company filed its original return on December 01, 2006 declaring income of Rs.93,87,127/ -. Notice under Section 143(2) was issued and served upon the respondent assessee on June 13, 2008 and taken up for scrutinizing assessment.

(3.) AGGRIEVED the respondent assessee approached Commissioner of Income Tax (Appeals) [CIT (Appeals) for short] in appeal wherein by an order dated January 20, 2010, it was held that the transactions -in -question for the purpose of trading and hence, the contention that the units were held for investment purpose, was not acceptable. Therefore, the Assessing officer was justified in treating the income from sale of shares as 'Business Income'. In short, the adverse findings recorded by the Assessing Officer were affirmed and upheld.