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2016 (7) TMI 690 - AT - Income TaxProfit on sale and purchase of shares - Treatment of income under the head short-term capital gain OR business income - Held that:- The details of the transactions of sale and purchase of shares and the resultant gains arising therefrom are placed in the paper book which we have given an anxious thought. Keeping in view the factual matrix and the peculiar facts and circumstances of the case, we are of the considered view, it will be just and appropriate in the interest of justice that the gains arising from sale of shares held for a period of up to 30 days should be treated as business income and brought to tax as income from business as there is reflected an indica of trade on the part of the assessee in selling the shares within such a short period of time of holding up to 30 days, while gains arising from sale of shares held for a period of holding of shares of more than 30 days and not more than twelve months, the resultant gain arising therefrom should be charged to tax as short-term capital gains as there is reflected an indica of investment where the period of holding is more than 30 days and not more than twelve months. The Assessing Officer is directed to compute the respective business income and short-term capital gain on sale of shares accordingly as indicated by us as above.
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