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2012 (9) TMI 441 - ITAT DELHIProfit on sale of shares/mutual funds - Business income OR income from capital gain - Held that:- That the mere volume of transactions transacted by the assessee would not alter the nature of transactions. Since there is no evidence on record that the assessee traded in the aforesaid shares/mutual funds regularly and frequently, considering the magnitude of transactions in shares/mutual funds and the CBDT circular No. 4 of 2007 of 15-6-2007 itself envisaging the possibility of having two portfolios, i.e., an investment portfolio comprising of securities which are to be treated as capital assets and a trading portfolio comprising of stock-in-trade which are to be treated as trading assets, thus the assessee’s version that the aforesaid shares/mutual funds were held by way of investment in the years under consideration has to be accepted. Since the DR did not place any material controverting the aforesaid findings of facts recorded by the CIT(A) nor brought to our notice any contrary decision, we have no alternative but to uphold the findings of the ld. CIT(A) - in favour of assessee. Disallowance of the claim of loss on share transaction - CIT(A) allowed it - Held that:- On test checking the details and documents pertaining to the claim of loss on future and option shares and the claim of the appellant appears to be supported by vouchers and contract notes which are verifiable with reference to the books of accounts. Therefore, no hesitation to conclude that the assessee has provided the necessary details and discharged the onus cast on it. The Assessing Officer has not brought anything on record to dispute the facts/details furnished by the assessee - as. DR did not place any material controverting the aforesaid findings of facts recorded by the CIT(A) nor brought to our notice any contrary decision the disallowance need to be deleted - decided in favour of assessee.
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