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2014 (1) TMI 1707 - AT - Income TaxPurchase and sale of shares / units - “business income” OR “capital gain” - Held that:- We are of the opinion that the mutual funds activity falls in a zone of investment activity and not in the trading activity. Accordingly, the assessee is granted relief on account of mutual funds and the relevant grounds are allowed. - Decided in favour of assessee Short term capital gains as sale on shares which is held by the AO as business income - Held that:- It is an admitted fact that the claim of the assessee was accepted in the earlier years. The said assessments were not reopened or reviewed consequent to the decision of the AO in this year. It is not made out that it is a case of re-entered transactions predominantly by the Revenue Authorities. There is no allegation in the orders of the Revenue Authorities that the impugned shares sold by the assessee are taken out of the lots held as stock-intrade. Considering the above factual matrix on this case as well as transactional data of 61 scrips, 69 transactions, purchase turnover of ₹ 37.69, sales turnover of ₹ 39.19, we are of the opinion that the claim of the assessee should be accepted. As such the holding period alone is not a conclusive to decide if a transaction is of investment or trading transaction. Intention of the assessee is relevant and there is no reason made out by the AO to conclusively to determine that the impugned transactions are of the trading nature. - Decided in favour of assessee
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