KIRAN SOMANI Vs. ASSTT. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD Sri S.D. Singh, learned Senior Advocate, assisted by Sri Krishna Dev Vyas, Advocate, for appellant and Sri R.K. Upadhyay, Advocate, for respondent.

(2.) THIS appeal under Section 260A of income Tax Act, 1961 (hereinafter referred to as "Act, 1961") has arisen from assessment proceedings for the assessment year 1992 -93 wherein the Revenue has considered the transaction of shares by appellant as "adventure in the nature of trade" instead of "income from capital gain" and have taxed appellant accordingly.

(3.) FOR the Assessment Year 1992 -93, appellant -Assessee submitted return declaring income of Rs. 2,86,798/ -. The Assessee disclosed profit on share transaction and claimed deduction under Section 48(2) of Act, 1961. In the relevant year, the sale of shares was Rs. 4,22,485/ -, dividend Rs. 800/ - and interest Rs. 994/ -. Consequently net profit was shown as 4,23,614/ -. Claiming deduction of Rs. 1,26,212/ - under Section 48(2) of Act, 1961 and some minor deductions under Section 80L, Rs. 3633/ -, and under Section 80CCB, i.e., Rs. 10,000/ - etc., the appellant disclosed income of Rs. 286798/ -.