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TMI Blog2013 (1) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ital gain and long term capital gain be treated as business income has no substance and are without any cogent reason and thereby deleting addition of Rs.1,38,015/- and Rs.1,07,44,493/- made by the AO on account of Short Term capital gain and Long Term capital gain respectively." The assessee is engaged in sale and purchase of shares and maintains two separate portfolios. One is an investment portfolio and the other is a trading portfolio. This practice of the assessee has been going on for earlier years also and this has been recognized by the revenue as also by the Tribunal in the impugned order. It is only in this year that the assessing officer made additions of Rs.1,38,015/- and Rs.1,07,44,493/- on account of short term capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant as investment (and therefore giving rise to capital gains) or as stock-in-trade and therefore giving rise to business profits). The Assessing Officer is further advised that no single principle would be decisive and the total effect of all the principles should be considered to determine whether, in a given case, the shares are held by the appellant as investment or stock-in-trade." After concurring with the views expressed by the CIT(Appeals), the Tribunal held as follows :- "6. We have heard rival contentions and gone through the relevant material available on record. CBDT by way of above Circular has allowed the assessee to maintain two types of portfolios in their books of accounts - one on account of investment and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes of investment and/or for the purposes of trading. In the former case whenever the shares are sold and gains are made the gains would be capital gains and not profits of any business venture. In the latter case any gains would amount to profits in business. This has been made clear by the CBDT circular in the remaining portion of the circular itself. 6. On facts, the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal have held that the short term capital gains and the long term capital gains in the present case were out of the investment account and were not related to the trading account of the assessee. That being the position, no interference with the decision of the Tribunal is called for. No questio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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