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2015 (4) TMI 149 - AT - Income TaxShare transaction - Short Term Capital Gain v/s Income from Business - whether period of holding of shares is the basic yardstick for determination of either investment or dealing in shares? - Held that:- As held by the Hon’ble Apex Court in the case of Associated Industrial Development Co.Ltd. (1971 (9) TMI 3 - SUPREME Court), whether a particular holding is by way of investment or formed part of stock in trade is a matter which is within the knowledge of the assessee and it is for the assessee to produce evidence from his records as to whether he maintained any distinction between shares which were hold by him as investments and those hold as stock in trade. In this case the assessee has not produced any such evidence. The fact remains that the assesee has purchased and sold these shares within a period of one week’s time and gained ₹ 66,20,920/-. Though purchased in previous year they were not accounted for or classified as investment. This coupled with the fact that the entire purchase has been sold shows that the assessee has never intended to keep these shares as investment. Commissioner of Income- Tax (Appeals) was justified in confirming that assessment of Short Term Capital Gain as Income from Business. - Decided against assessee.
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