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2016 (12) TMI 174 - AT - Income TaxSale of shares - business income OR short term capital gains - Held that:- Where the assessee has repeatedly invested in shares, may be, the quantity was higher or the periodicity of transactions were more, does not decide the nature of activity to be a business. Where the intention of assessee was to make investment, wherein the delivery of shares were taken by the assessee and was then on appreciation sold in the open market, then gain arising on such investments is to be assessed as ‘Income from short term capital gains’ and not as ‘Income from business’. Accordingly, the order of CIT(A) is reversed in this regard. Further, in respect of shares of I Bulls and Astramic, the income is assessable as speculation business since the assessee had not taken the delivery of shares. Accordingly, the Assessing Officer is directed to re-compute the income in the hands of assessee. However, in respect of balance shares, the same are directed to be assessed as ‘Income from short term capital gains’. - Decided in favour of assessee.
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