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Judgment
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the assessment order dated 31.12.2024 passed u/s 147 r.w.s. 144C(13) of the Income Tax Act, 1961 (herein after referred to as ‘the Act’) for AY 2016-17.
Shri Sachin Dhall, Advocate appearing on behalf of the assessee submitted that the short issue in appeal is treating of long term capital gains as short term capital gain by the Assessing Officer (AO). Narrating facts of the case the ld counsel for the assessee submitted that the assessee is a non-resident and is employed in the USA. The assessee has made investments in securities in India. During the period relevant to assessment year in appeal, the assessee has sold some of the securities on which the assessee has earned long term capital gains. To substantiate his submissions the assessee referred to DEMAT account statement and also the transaction details. The ld counsel submits that a perusal of the transaction details clearly show that all the securities that were sold during the relevant period were held for more than 12 months. The AO and the Dispute Resolution Panel (DRP) have erred in coming to the conclusion that the gain on securities is short term.
Per contra Shri M. S. Nethrapal, CIT DR appearing on behalf of the assessee vehemently defended the impugned order and prayed for dismissing appeal of the assessee.
We have heard both the sides. The solitary issue in the present appeal is addition made in hands of the assessee on account of capital gains amounting to Rs. 76,082/-. During the relevant assessment year, the assessee has sold shares on which the assessee has earned long term capital gain of Rs. 76,082/-. The list of shares sold during FY 2015-16 and Long Term Profit/ Loss on sale of said shares is at pages 48 & 49 of the Paper Book. A perusal of the transactions of sale of shares clearly show that the assessee was holding said shares for more than 12 months. Thus, the AO and the DRP have erred in coming to the conclusion that the assessee has earned short term capital gain on sale of securities, whereas the documents on record clearly indicate the nature of capital gain as long term. In light of the documents on record, the addition is directed to be deleted.
In the result, the Appeal of the assessee is allowed.