TMI Blog2010 (1) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... ck was there, major portion of the same was sold during the year under consideration and the business profit was offered for taxation. In fact there was an opening stock of Rs. 2,69,87,538 and out of the same was sold at Rs. 1,80,98,024 and remaining stock of Rs. 88,89,514 was transferred to investment account. No sale whatever was effected on account of transfer to investment during the year under consideration sale of stock of Rs.1,80,98,024 has been offered as business income. The stock transferred to investment account was sold in the subsequent year. The details to this effect are placed at page 29 of the paper book. There is no ban to do both these activities together, i.e., trading in shares and investment in shares. There is a Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in equity shares, the assessee sold the investments. The surplus earned on sale of investments was shown as short-term capital gains. It was explained that the short-term capital gains had been shown in earlier years also. Reliance was placed on the decision of the Tribunal in the case of Janak S. Rangwala decided in I. T. A. No. 1163/Mum/2004. The Assessing Officer observed that the business of the assessee is that of trading in shares as was done in earlier years. The details of transactions filed shows that 93 per cent. of the transactions have been settled within a short span of time ranging from 7 days to 3 months. The short holding period clearly reflects the intention of the assessee to earn quick profits rather than to make investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Ess Jay Enterprises P. Ltd. [2007] 165 Taxman 465 and the decision of the Tribunal in the case of J. M. Share and Stock Brokers Ltd. decided in I.T. A. No. 2801/Mum/2000. After considering the submissions and perusing the material on record, the Commissioner of Income-tax (Appeals) was in agreement with the findings of the Assessing Officer. By discussing the issue in detail, the Commissioner of Income-tax (Appeals) confirmed the action of the Assessing Officer. Now, the assessee is in appeal here before the Tribunal. The contentions raised before the lower authorities were reiterated by learned counsel for the assessee here before us. It was explained that the assessee stopped trading activity and whatever stock was sold during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities below. It was further submitted that the assessee is indulging in speculative transactions also ; therefore, activity of the assessee is that of trading and not investments. In reply, learned counsel for the assessee stated that no doubt the assessee has speculative transactions also but the same has been shown as speculative transaction in the computation of income. Attention of the Bench was drawn on the computation placed on record. We have heard the rival submissions and considered them carefully. We have also perused the relevant material on record and find that the assessee deserves to succeed in his appeal. The assessee was doing trading shares as well as investment. Both these activities were done in past and the profit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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