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2015 (8) TMI 233 - HC - Income TaxIncome arising on purchase and sale of shares - business income OR income from investments under the head 'capital gains' - Held that:- On examination of the manner in which the Appellant carried out its activity of purchase and sale of shares facts are indicia of the Appellant doing business in shares as a dealer thereof and not as an investor. Normally, no investor would deal with six different share brokers, or for that matter borrow funds for the purposes of investment in shares. Further, the tax audit report filed by the Appellant had classified the Appellant's transactions in shares as shares trading transactions. Moreover, the impugned order of the Tribunal also records that the number of transactions carried out by two Appellants were 100 and 120 shares respectively in a very short period. Further, the turnover in case of the father was ₹ 4.89 Crores and in case of son was ₹ 4.12 Crores. All these were indicative of there being a regular systematic activity which is the activity of business being pursued by the Appellant. We do not find any merit in the submission that the Tribunal in the impugned order while dealing with the issue of charging tax under the head 'business income' or as 'capital gain' was influenced by the fact that some transactions were found to be bogus. In fact, the impugned order after making the above observation with regard to the Appellant's conduct, observes that notwithstanding the same, the income on purchase and sale of shares is taxable as business income. Tribunal was correct in treating the income arising on purchase and sale of shares as business income and not as income from investments under the head 'capital gains' as sought by the Appellants. - Decided against revenue.
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