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2013 (11) TMI 898 - ITAT MUMBAIPurchase and sale of share & securities transaction to be treated as ‘Business income’ instead of ‘Income under the head short term or Long term capital gains’ – Held that:- Looked into various incidents and aspects of the transactions, viz., the number and volume of the transactions; frequency; holding period; utilization of borrowed capital, etc., which have to be considered in their entirety, even as it is trite that even a single transaction could be in the nature of trade, so as to qualify for being considered as a business transaction or on trading account - In the instant case, assessee has itself classified the said transactions as share trading transactions in the tax audit report - The total number of transactions works to 150 and 120 in the case of both the assesses i.e. father and son respectively; the corresponding turnover being at Rs.489.79 lakhs and Rs.412.12 lakhs, which, in view of the short holding period, would work out to a (turnover) ratio at as high as 10, i.e., of the capital employed, including that borrowed, on which interest has been claimed and allowed - It is a clear case of systematic activity being perused with a profit motive, deploying capital and bearing the concomitant risk, both business and financial, inasmuch as the borrowed capital stands also deployed - Therefore, no infirmity inflicts the Revenue finding their nature as of business, and assessing the income accordingly as business income – Decided against the Assessee.
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