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2019 (1) TMI 649 - AT - Income TaxIncome from purchase and sale of shares - income from business against OR short term capital gain - Held that:- We notice that assessee has declared income from salaries, business and short term capital gains (STCG). The majority of the income is derived from STCG. A.O. treated the STCG as business income with the observation that the assessee has dealt in the share market regularly and the volume of transaction denotes that the assessee is in the business of share trading. Further, he observed that majority of the profits earned are through buying and selling of shares which taken place within a period of 10 days and 100% share transactions were completed within one month. In our considered view, the intention to hold the investment for long period or transfer within that period to earn additional profit is depending upon the action of the assessee but cannot be demonstrated. This is the one issue always lead to litigation. For this purpose and to reduce the litigation, the CBDT has issued a circular No. 06/2016. - Decided in favour of assessee.
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