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2012 (5) TMI 89 - DELHI HIGH COURTGains from sale and purchase of securities should be treated as business income or capital gains - the assessee is an salaried employee had also made purchases and sold securities maintaining two separate portfolios i.e. investment portfolio and trading portfolio – Held that:- Quantum or total number shares/transactions subject matter of short term capital gains is substantial but the transactions in question are only seven in number and the period of holding cannot be treated as insignificant and small - period of holding may indicate intention to make investment - substantial dividend income of more than Rs.19 lakhs and Rs.27 lakhs in the assessment year 2005-06 and 2006-07 can happen even in case of investment portfolio because when investment is liquidated to earn gains and change their portfolio - no mention whether the assessee had indulged in frequent transactions in the previous period or subsequently - Merely because the assessee had sold the said shares in the relevant year and made substantial gains and could not show basically the objective for acquiring the shares was not as an investor but as a trade - in favour of the assessee.
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