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2017 (12) TMI 672 - BOMBAY HIGH COURTIncome from the share trading - Capital gain or business income - Held that:- The number of scrips purchased and sold during the year was 100% more than the last assessment year. As also observed that in the turnover of purchase value and sale, there is a huge increase from ₹ 2.37 crores to 5.98 crores. It was found as a matter of fact that the assessee earned ₹ 16.10 lakhs on the trading of shares which were held by him only for a period of one to seven days. Thus, a finding of fact was recorded that major portion of STCG was out of the sale of shares that were held only for a maximum period of one week. Thereafter, the Appellate Tribunal referred to the finding of the first Appellate Authority. Short holding period, volume of the scrips and frequency of the transactions are major factors to decide the issue as to whether the assessee is an investor or was doing business in shares and security. After considering the peculiar facts of the relevant assessment year namely that the STCG of ₹ 16.62 lacs was from the shares which were held for a maximum period of one week, the finding of fact recorded by the first Appellate Authority has been upheld by the Appellate Tribunal. As already quoted above, a sum of ₹ 16,62,262/was held as business income. In our view, the findings of fact recorded by the Appellate Tribunal are based on record.
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