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2014 (5) TMI 936 - AT - Income TaxIncome from sale of shares treated as business income – Held that:- During the year assessee has done 71 transactions in 37 shares, which means 6 transactions per month - by any stretch of imagination it cannot be considered as high frequency transactions - The assessee has been showing bonds, debentures, fixed deposits, mutual funds and shares under the head “investment” – Relying upon CIT v/s Madan Gopal Radhey Lal, [1968 (9) TMI 14 - SUPREME Court] - the long term capital gain has been accepted by the AO - If the AO is of the firm belief that the assessee is engaged in trading activities in the shares, then it does not make any difference whether the shares are held for more than 12 months or less than 12 months - the AO has accepted that the assessee as an investor insofar as the long term capital gain is concerned – there was reason as to why the profit should not be taxed under the head “short term capital gain” as returned by the assessee – the order of the CIT(A) is set aside and the AO is directed to tax the gains arising from the share transactions under the head “Short term capital gain” as returned by the assessee – Decided in favour of Assessee.
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