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2017 (11) TMI 2049 - AT - Income TaxCorrect head on income - income from share transactions - under the head short term capital gain or business income - dual portfolio - HELD THAT:- It emerges out from the record that the assessee maintained two separate accounts i.e. one for investment, and other for trading in shares. This fact has not been disputed by the CIT(A). In the assessment year 2006-07, assessment was framed u/s 143(3). AO has accepted the status of the assessee as an investor. Similarly, in the AY 2007-08 and 2009-10, the Revenue did not disturb the status declared by the assessee and accepted returns u/s 143(1) of the Act. In the earlier year and in subsequent year, the status of the assessee as investor was not disputed. The assessee has not used borrowed funds. All these shares were purchased by the assessee were on delivery basis. He has transacted in 16 scrips, though the transactions are large in number, but mere volume of transactions is not a criteria to doubt the treatment given by an assessee about its investment in the books. Therefore, considering we allow the appeal of the assessee, and direct the AO to treat the investment made by the assessee as an investor and the assess the income resulted to the assessee on sale of such investment as short term capital gain. Appeal of the assessee is allowed.
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