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2010 (2) TMI 875 - AT - Income TaxSale and purchase of shares - short-term capital gain or business income - Held that:- In understanding whether the particular transactions constitute investment activity or trading activity cumulative effect of various factors such as intention of the assessee, treatment given in the books, volume and frequency of transactions, time and efforts devoted etc. have to be taken into account and no such factor is conclusive in deciding the true nature of transactions. In case of the assessee on an average there are only 3-4 cases of purchases and sales during a month and considering that the sales and purchases orders are placed on telephone, these do not require any organized efforts. Assessee had sold some shares within a few days of purchases transactions were accepted as investment activity, as similar transactions had been accepted by the department as investment activity in the earlier years. In the case of Gopal Purohit (2010 - TMI - 35188 - Supreme Court of India) the assessee had dealt in much larger number of scrips and transactions and was also trading in shares and was engaged in F and O business in addition to the investment activity whereas the assessee had only investment activity, transactions in shares as investment activity. The order of CIT(A) is accordingly set aside and the claim of the assessee is allowed, appeal of the assessee is allowed.
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