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2013 (12) TMI 470 - AT - Income TaxWhether the income arrived on sale of shares is business income of the assessee – The frequency and regularity of buying and selling of shares, by the assessee is very high. The period of holding of shares is also very less - The assessee has held 1,16,139 shares for a period of one day to fifteen days only - Held that:- The mode of buying and holding of shares reveals that the intention of the assessee is not to hold on these shares for a longer period for earning dividend, but to use the shares for trading purposes only - The assessee has acquired scrips of as many as 90 companies during the year and purchases of which were also not made at once but on multiple occasions and in different quantities - Following ACIT V/s. Shri Anil Kumar Jain and another - The assessees have made several transactions of purchase of shares during the relevant year under consideration, and if there high volume, frequency and regularity of the activity carried on by the assessee in a systematic manner, it would partake the character of business activities carried on by the assessee in shares, and it cannot be said that the assessees have merely made investments in shares - The assessee has carried on the activity in a systematic and organized manner with an intention to earn profit - In subsequent assessment years i.e. in 2009-10 and 2010-11 also the assessee has treated the transaction in shares as business. In fact for the assessment year 2010-11 the assessee has disclosed a profit of Rs.2,14,80,187/-as profit from sale of shares and has paid tax of Rs.66.40 lakhs - Decided against Revenue.
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