COMMISSIONER OF INCOME TAX Vs. SONAL ABHAY MEHTA

JUDGEMENT

(1.) THIS Income Tax Appeal has been preferred under section 260 -A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961') against the order dated 28.11.2013 passed by the Income Tax Appellate Tribunal, Jodhpur Bench Jodhpur (hereinafter referred to as 'the Tribunal').

(2.) BRIEF facts, necessary for adjudication of the appeal, are that the income of the respondent -assessee was assessed by the assessing authority for the assessment year 2006 -2007. The Return filed by the assessee was rejected and the Assessing Officer, while exercising powers under section 143(3) of the Act of 1961 has assessed Rs. 48,34,762/ - as business income instead of short term capital gain. The Assessing Officer has held that it is established that assessee was dealing in shares as trader and shares were held by her as stock -in -trade. The Assessing Officer treated the amount of Rs. 48,34,762/ - as trading income instead of short term capital gain and held that such trading income is liable to be taxed under the head "income from business and profession". Being aggrieved with the decision of the Assessing Officer, the respondent -assessee had preferred an appeal before the Commissioner, Income Tax (Appeals), Udaipur (hereinafter referred to as 'the CIT(A)'), which was accepted vide order dated 13.05.2011. The CIT(A) has observed as under:

(3.) THE appeal preferred against the order passed by the CIT(A) dated 13.05.2011 came to be dismissed by the Tribunal vide order dated 28.11.2013 while observing as under: