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2016 (7) TMI 816 - AT - Income TaxNature of income on sale and purchase of shares - Short term capital gains OR business income - Held that:- A perusal of the profit and loss account of the assessee shows that the assessee has separately shown Derivative profit, long term capital gains/short term capital gains on shares. In the balance sheet, the assessee has shown shares under the head 'investment'. These investment shares have been valued at cost. The intention of the assessee at the time of the purchase of shares is paramount. If the assessee has clear intention of being an investor and showing the shares as investment, we do not find any reason to disturb the intention of the assessee. A perusal of the aforementioned history of assessments of the assessee shows that only during the impugned assessment year, the A.O. has taken a stand that that the assessee is trading in shares. The Hon’ble Supreme Court in the case of Radhasoami Satsang [1991 (11) TMI 2 - SUPREME Court] has expounded the rule of consistency observing that if the facts are identical and the law has not changed then the view taken in the earlier years should be followed. CIT(A) did not erred in law and on facts in directing not to treat the short term capital gains earned by the assessee as business income. - Decided against revenue
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