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2014 (2) TMI 889 - AT - Income TaxNature of Transaction – Investment OR Trading - The CIT(A) has rightly held that the assessee has treated the shares as investment and not Stock in Trade - the volume of transactions, frequency of transaction and period of holding etc., would not alter the nature of transaction from investment to trading - The assessee cannot be held an investor for the shares sold during the year under consideration, as the activities carried out him for the year clearly indicate that he wanted to maximise the profit and not to make long term investments - assessee was carrying out business of shares in a systematic and organised manner - Short holding period, volume of the scrips and frequency of the transactions are measure factors to decide the issue as whether an assessee is an investor or doing a business of shares and securities – thus, the order of the FAA does not suffer from any infirmity – Decided against Assessee. Long Term Capital Gain – Held that:- Neither the AO nor the FAA had analysed the pattern of holding period of shares that were held for more than one year - Assessee had a specific claim that some of the shares were held since FY. 2002-03 - FAA has completely ignored the submissions made by the assessee in this regard - Without assigning any reasons for treating the income of LTCG as business income, he has confirmed the order of the AO – the matter needs further verification – thus, the matter remitted back to the FAA for adjudication – Decided partly in favour of Assessee.
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