PR. COMMISSIONER OF INCOME TAX Vs. WIG INVESTMENT

JUDGEMENT

(1.) This appeal concerns Assessment Year (AY) 2006-07. Via the instant appeal, the appellant/revenue seeks to assail the order dtd. 16/10/2018, passed by the Income Tax Appellate Tribunal [hereafter referred to as "the Tribunal"].

(2.) Based on the aforesaid findings of fact, the CIT(A) concluded that the gains derived by the respondent/assessee on the transfer of mutual funds were chargeable under the head "capital gains". Accordingly, the addition made by the AO of Rs.4,28,82,839.00 under the head "profits and gains of business or profession" was directed to be deleted. Furthermore, a direction was issued to the AO to assess the said sum under the head "capital gains", in accordance with the law. The AO was also directed to grant the respondent/assessee consequential relief.

(3.) As regards the addition of Rs.21,08,38,530.00 as deemed dividend under Sec. 2(22)(e) of the Act in the hands of the respondent/assessee, the CIT(A), after a detailed discussion, came to the following conclusion: