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TMI Blog2013 (5) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the assumption that the deceased assessee after purchase of 6500 shares had sold the entire 6500 shares while the deceased assessee had sold 4500 shares during September 2005 to November 2005 and had retained 2000 shares and hence there was a long term investment made by the assessee and the same would not be a business income. 2. The Hon'ble Lower Authority has erred in holding that the transaction was not routed through any demat account and that the shares were purchased through a private person while the entire transactions were through a demat account held by the deceased in Kary Stock Broking Pvt. Ltd. vide Client ID No. 14942779 and the account of the deceased assessee with the AP Mahesh Coperative Urban Bank Ltd. reflects the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oted by the Assessing Officer that the transaction was not routed through any demat account. The Assessing Officer further noted that the shares purchased for a price of 21.85 per share was quoted at a very high rate of Rs. 483/-, 488, 485, 479 at the time of sale of share. The Assessing Officer further noted that the assessee did not produce the annual report of the company to know the details of the company for finding out what are the achievements of the company to get such a higher rate for the shares. The Assessing Officer finally came to hold that the intention of the assessee in purchasing the shares were for the purpose of business to derive profit from the sale of share and not to hold them as investment. He, therefore, rejected th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted through Demat account is also not correct. In this context, the learned counsel submitted a copy of the Demat account of the assessee with Karvy Stock Broking Pvt. Ltd. having Client ID No. 14942779. The learned counsel further submitted that entire transaction of purchase and sale was not only routed through the Demat account but the sale proceeds were also deposited with the assessee's bank account in AP Mahesh Bank. In support of his contention, the learned counsel submitted the bank account, copies of contract note and share transfer certificate. 9. The learned Departmental Representative, on the other hand, supported the orders of the authorities below. 10. We have heard the rival submissions of the parties and perused the materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The other allegation of the revenue authorities that the share transaction was not routed through Demat account is also found to be incorrect, as the assessee has produced before us the Demat account with Karvy Stockbroking Pvt. Ltd., through which the share transactions were routed. However, as it appears, these documents were not produced before the lower authorities. Before treating the purchase and sale of share as a trading activity, the Assessing Officer has to consider whether the intention is to hold the shares as investment for earning dividend or for trading purpose to earn profit. The frequency and volume of transaction of share also requires to be considered to find out whether it is a trading or investment activity. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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