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2014 (1) TMI 231 - AT - Income TaxWhether transactions in shares be considered as trading activity - Held that:- Assessee filed a complete details of long term capital gains on sale of shares and short term capital gains on sale of shares for the relevant years - Holding period is from 1 year to 10 years in some cases and even in some cases it is 15 years - The accounting treatment given by assessee has never been disturbed by revenue - In earlier years and in future years assessee's contention for all along been accepted - The systematic investment is nothing but investment not trading - Following CIT Vs. Gopal Purohit [2010 (1) TMI 7 - BOMBAY HIGH COURT] - When the factual position is very clear in the case that the assessee is holding the shares as an investment and the profit arising out of sale of shares is capital gains either long term or short term - The gains on account of transfer of shares shall be treated as capital gains as against business income assessed by the A.O - Decided against Revenue. Disallownace u/s 14A - Held that:- The CIT(A) was not justified in not directing the assessing officer to recompute disallowances as the calculations made by him under Rule 8D (2) (ii) and (iii) were erroneous as he computed these disallowances on the entire amount of investments appearing in the balance sheet instead of taking the average of value of those investments, the income from which does not/ shall not form part of the total income, as provided in Rule 8D - Decided in favour of assessee.
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