2013 (1) TMI 315

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....tal 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 a....

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....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 t....