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2011 (12) TMI 391 - AT - Income TaxShort term capital gain or business income - assessee claimed Long Term Capital Gain on ₹ 1,20,07,344/- and Short Term Capital Gain of ₹ 2,09,20,782/- aggregating to ₹ 3,29,28,126 - Assessing Officer has treated said capital gain shown by assessee by purchase and sale of shares as business income - In addition to the Capital Gains earned from the Investment in shares, the appellant had declared income from dividend of ₹ 30.59 lacs; received from the said shares being held as investment by the appellant - The intention of the appellant was to earn dividend income and also to reap the benefits of appreciation in price of shares occasionally, which every investor in shares always does - The assessing officers are further advised that no single principle would be decisive and the total effect of all the principles should be considered to determine whether in a given case, the shares are held by the assessee as investment or stock-in-trade - Held that: assessee is dealing in or trading in shares but the entire investment in purchase and sale of shares/mutual fund has been shown by assessee under the head "investment" only and no investment is shown under the head trading activity - Merely because assessee has shown shares/mutual fund under the head "investment" cannot alter the situation. It is the settled proposition of law that entries in books of account are not conclusive - Held that: transactions entered into by assessee for purchases and sale of shares in the year under consideration is in the nature of trade and not by way of investment - Appeals are dismissed
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