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2016 (9) TMI 245 - AT - Income TaxTransaction of shares - business income or capital gain - Held that:- No doubt, as per CBDT circular No.4/2007, the assessee is permitted to maintain two portfolios i.e. trading as well as investment portfolio but the assessee is duty bound to produce evidence that certain transactions were intended to be by way of investment and some are by way of business transactions. As the issue has to be decided based on the facts of the case, in the absence of any evidence on record that the assessee intended to hold certain shares as investments and the fact that in earlier years this was shown as a trading portfolio goes to prove that the claim from the assessee is merely bald. There was no evidence adduced by the assessee to show that some of the transactions were held as investment or to establish intention at the time of purchasing shares that the transactions were undertaken with a motive of investment. Therefore, in the circumstances, the CIT(A) is not justified to come to conclusion that the assessee is an investor without referring to any material or evidence. Therefore, we hold that the respondent-assessee is merely a trader in shares and profit arising on sale of such transaction should be assessed as business income. - Decided in favour of revenue
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