COMMISSIONER OF INCOME TAX Vs. DARIUS PANDOLE

JUDGEMENT

(1.) THE Revenue, in its appeal under s. 260A of the IT Act, 1961, has raised the following substantial questions of law :

(2.) THE appeal relates to the asst. yr. 2003 -04.

(3.) BOTH for the asst. yrs. 1997 -98 and 2002 -03, scrutiny assessments were framed under s. 143(3). In the course of the 2003 in which the assessee was called upon to clarify as to why the loss on the sale of shares had been debited to the of his contention that his business consisted of the purchase and sale of shares. The letter of the assessee recorded that during the course of discussions, the AO had pointed out that he intended to treat the loss under the head "Income from capital gain" mainly on account of the fact that his stock of shares had been shown under the head "Investments" in the balance -sheet. The assessee submitted on the basis of precedent that the trading receipt would not cease to be so by being written up in the books of account in a particular manner and that the entries in the books of account could not alter or affect the character of the transaction. The same position obtained for the asst. yr. 1997 -98 where a similar completed for the asst. yrs. 1997 -98 and 2002 -03 and the contention of the assessee was duly accepted.