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2013 (12) TMI 69 - ITAT HYDERABADShare trading activity - Held that:- The assessee has made several transactions of purchase and sales during the relevant year under consideration and the high volume of frequency and regularity of the activity - Following PVS Raju vs. Addl. CIT [2011 (7) TMI 818 - Andhra Pradesh High Court] - The activity carried on by the assessee in purchase and sale of shares would partake the character of business activity and it cannot be said that the assessee had merely made investments in shares - The CBDT circular No.4/2007 specifically states that no single principle can be taken and the total effect of all the principles should be considered to determine whether in a given case the shares are held by the assessee as investment or stock in trade - The share trading done by the assessee is nothing but trading activity done regularly with the sole intention of earning profit and hence, the entire income is to be treated as 'Income from Business' - The voluminous share transactions were in the ordinary line of the assessee's business, purchase of shares by them was not for the purpose of earning dividend but with the dominant intention of resale in order to earn profits. The profits made by assessee was not of mere enhancement of value of shares, but was a profit made in the carrying on of a business scheme of profit making. The repetition and continuity of the transactions gave them a flavour of "Trade" - Decided against assessee.
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