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2012 (2) TMI 14 - ITAT MUMBAINature of Income - Capital gain vs Business income – Insurance agent – purchase & sale of shares – Held that:- Applying the ratio of the various decisions to the facts of the present case with regard to intention of assessee, frequency of transactions, treatment in Balance sheet, borrowed funds etc, it becomes abundantly clear that the transactions in the shares and mutual funds were made by the assessee as investor and not as a trader, therefore, the profit earned from the said transactions is short term capital gain, not business income. Order of A.O. & CIT are set aside and it is directed to A.O. to treat the income as income from short term capital gains and not business income. See CIT vs Gopal Purohit ([2010 (11) TMI 222 - SUPREME COURT]), Sarnath Infrastructure (P.) Ltd. v. ACIT [2007 (12) TMI 261 - ITAT LUCKNOW-B]- Decided in favor of assessee.
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