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2012 (12) TMI 1043 - AT - Income TaxTransactions on sale of shares - whether business income or short term capital gain - Held that:- assessee has held the shares of various companies as investments only - mere fact that some shares have been held for less than 30 days will not by itself make the appellant a trader - assessee has intention of enjoying the appreciation in value of shares and merely that some shares have been sold in less than 1 year, cannot lead to conclusion that he had a different intention in respect of such shares - assessee has used his own funds for the purchase of shares and no borrowed fund was used by the assessee - it is relevant to see the intention of the assessee as to whether the activity amounts to trading activity or investment activity - thus the intention of the assessee is to hold as investment - also volume of transactions would not alter the nature of transaction from investment to trading hence the profits are to be shown as short term capital gains - Decided in favor of assessee
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