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2015 (5) TMI 818 - AT - Income TaxRevision u/s 263 - directing AO to treat income from sale of shares as business income instead of income from short term capital gains - Held that:- Perusal of the questionnaire as well as reply given by the assessee exhibits that Assessing Officer has conducted inquiry before accepting the stand of the assessee. In the impugned order, Ld. Commissioner has nowhere pointed out, as to how the order of the Assessing Officer is erroneous. He simply observed that since assessee has earned huge margin on short term investment, therefore, the transaction ought to have been treated as speculative transaction. Even otherwise, the assessee has pointed out that delivery of the shares was taken by it in its Demat account. Speculative transaction means, a transaction in which a contract for the purchase or sale of any commodity including stocks and shares is periodically settled, otherwise than by actual delivery or transfer of the commodity or scripts. The Ld. CIT had nowhere establishes, as to how, it was speculative transaction. It is merely replacement of the opinion of the Assessing Officer with other possible view. Therefore, in our opinion Ld. Commissioner is not justified to take action u/s. 263. We allow the appeal of assessee and quash the impugned order passed u/s. 263 of IT Act by Ld. CIT. - Decided in favour of assesse.
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