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TMI Blog2013 (12) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome/loss and treating the profit/loss on sale of shares held for more than 30 days as capital gains. 3. The facts giving rise to this grievance show that the assessee is a HUF and for the year under consideration filed the return of income declaring total income of Rs. 41,59,680/-. During the course of the scrutiny assessment proceedings, the Assessing Officer observed that the assessee has declared income from Short Term Capital Gains (STCG) and other sources. On scrutinizing the statement of STCG, the AO observed that the assessee has indulged in voluminous transactions. The AO sought explanation from the assessee as to why such transaction should not be treated as business activity and the resulting gains as income from business. 3.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of STCG on the basis of holding for more than 30 days and less than 30 days in respect of his secondary market transaction. The assessee filed the necessary details. The Ld. CIT(A) was of the opinion that Short Term profit on sales of shares held for less than 30 days which were brought and sold from secondary market should be treated as business income and the remaining profit/loss on sale of shares held for more than 30 days should be treated as capital gains/loss. 5. The Revenue is in appeal before us against this finding of Ld. CIT(A). 6. The Ld. Departmental Representative vehemently supported the assessment order and drew our attention to the conclusion of the AO who stated that in the immediately preceding assessment year, STCG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT Vs Gopal Purohit 228 CTR 582 and submitted that it has been accepted that assessee can have two portfolios one as investor and the other as trader. The Counsel further reiterated that the assessee has not done intra- day trading but has taken delivery of shares and on the sale has delivered the shares and concluded that considering the facts and circumstances of the case for the year under consideration, earlier year's finding should not be applied. 8. We have considered the rival submissions and carefully perused the orders of the lower authorities and the relevant material brought on record. The entire dispute revolves around the treatment of STCG as business income. We find that the Ld. CIT(A) in his wisdom has bifurcated the ga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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