TMI Blog2015 (5) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... egards the floor, which can be as little as one day. When that is the position in law and the investor has adduced proof to show that some transactions were intended to be business transaction, some transactions were intended to be by way of investment and some transactions were by way of speculation and the revenue has not been able to find fault from the evidence adduced then the mere fact that there were 1000 transactions in a year or the mere fact that the majority of the income was from the share dealing or that the Managing Director of the assessee is also a Managing Director of a firm of share brokers cannot have any decisive value. The question essentially is a question of fact. The CIT Appeal and the learned Tribunal have concurren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Director of the appellant company is also a director in a share brokerage company which has acted as a share broker for the appellant company is not relevant. In fact a known broker is more convenient to carry out share transactions without putting pressure on appellant s own resources. The appellant is a certified Nonbanking financial concern. Apparently the main activities of the appellant are giving loans and taking loans and investing in shares and securities. Assessing Officer has not differentiated the purpose of purchase of shares purchased and held for more than one year and shares purchased and held for less than one year. The sale of share after holding it for more than one year and sale of the same share before one year cannot ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of shares resulting in capital gain are entered into with the intention of investment. As far as volume of transactions is concerned, it can only be an indicative factor but it cannot be a determinative factor in analyzing any transaction. In current days, change in portfolio is required on the basis of performances of the companies in various industrial and other sectors and volatile share market. The volume of purchase and sale of shares under investment is only incidental to the necessary changes required in maintaining a healthy investment portfolio of shares in a volatile share market. 4.2. In the guidelines of circular no.4/2007 of CBDT, it is mentioned that no single principle would be decisive and the total effect of all the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is also a Managing Director of a company which deals in dealings of shares only as a share broker. There was also evidence to show that the assessee indulged in a speculative activities. The income during the assessment year 2005-06 on account of shares was more than ₹ 3 crores whereas the income from monies lent and advanced was slightly more than ₹ 1,00,000,00/-. These are the facts and circumstances, which according to him, go to show that the assessee primarily was in the business of dealing in shares rather than in the business of investment. The frequency of transaction highlighted by Mr. Saraf is not decisive on either side. Frequency alone cannot show that the intention was not to make an investment. The le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdinarily required in law to give its own reasons when the Appellate Authority is in agreement with the views expressed by the judgment under examination. If any authority is needed, reference may be made to the judgment in the case of R. P. Bhatt Vs. Union of India reported in AIR 1986 SC 1040, wherein the following views were expressed:- It is not the requirement of Art. 311(2) of the Constitution of India or of the Rules of natural justice that in every case the appellate authority should in its order state its own reasons except where the appellate authority disagrees with the findings of the disciplinary authority. The position might have been different if Mr. Saraf were in a position to demonstrate that any point ..... X X X X Extracts X X X X X X X X Extracts X X X X
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