9911796707
TMI Blog2014 (5) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... arising in the instant appeal is the treatment of the income arising to the assessee (in the sum of Rs.15,74,397/-) for the purpose of its taxability under the Act, i.e., whether as short term capital gain (STCG), as returned by the assessee, or as business income, as being considered by the Revenue. 3.1 Opening the arguments for and on behalf of the assessee, it was submitted by the ld. Authorized Representative (AR), the assessee's counsel, that the assessee, an individual, has his own textile business. For the year under reference, he returned, as in the past, the income arising on the delivery based transactions in shares as capital gains, while admitting the income (or loss) on non-delivery based transactions therein as speculati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a term of wide import, and would include any activity that engages the time, attention, effort or even one's resources on a regular basis in pursuit of economic gain. The legal position, sought to be emphasized by the A.O. with reference to a number of decisions by the apex court, as under, has neither been disputed nor is disputable: (a) Raja Bahadur Visheshwara Singh v. CIT [1961] 41 ITR 685 (SC); (b) Dalhousie Investment Trust Co. Ltd. v. CIT [1968] 68 ITR 486 (SC); (c) CIT v. Sutlej Cotton Mills Supply Agency Ltd. [1975] 100 ITR 706 (SC); &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransactions in the F & O and the non-delivery based segments, so that the same, other things being equal, would be inferred for the delivery based transactions as well. Rather, how could, one may ask, the same to be construed any differently? However, though not subscribing so, inasmuch as the facts have to be necessarily viewed in a composite and holistic manner, even examining the cash, delivery-based transactions in isolation, the assessee has undertaken a total of 818 transactions during the year. If all this does not amount to business, what, we wonder, does? A perusal of the relevant transactions, detailed at pgs.10-22 of the paper-book, reveals a holding period of a few days generally, extending to within a month in most cases. The f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esides gaining in experience over a period of time, so as to undertake the said activity on a regular basis, which is by definition business. 4.4 The assessee has relied on the decision in the case of Associated Industrial Development Co. (P.) Ltd. (supra) wherein it is held that whether the shares are held as stock-in-trade or investment is something in the knowledge of the assessee. The same, however, would be of no consequence. This is as the assessee has, apart from only classifying his holding of shares as 'investment', done little to substantiate or justify the said treatment, i.e., with reference to the underlying activity. In fact, though the assessee speaks of maintaining two portfolios, his balance-sheet reflects the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
