TMI Blog2013 (4) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... ed u/s 153A, the assessee filed a return of income on 29.03.2010 declaring total income of ₹ 67,41,485/-.The assessment was completed on 31.12.2010 (wrongly mentioned by the CIT(A) as 30.10.2008) at a total income of ₹ 68,41,490/- by treating the short term capital gains claimed by the assessee as income from adventure in the nature of trade. The assessee has disclosed short term capital gains (STCG) at ₹ 67,41,488/- which has been treated by the revenue as income from adventure in the nature of trade. The facts, apropos this issue are that the assessee purchased shares of Lakshmi Energy Foods Ltd., in which her husband was one of the promoters/Directors. The total share-holding of the family was around 47% of the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld consequent upon spurt in prices and the loan was also repaid. This income has to be treated as business income. When the assessee went in appeal , ld. CIT(Appeals), in addition to reiterating the reasons taken by the AO, has also observed that even a single transaction can constitute a business as defined in section 2(3) of the Act and it is not essential that there should be a series of transactions, both of purchase and of sale of shares to constitute trade or business. Accordingly, he has confirmed the action of the AO. 3. Now, the assessee is further aggrieved and has raised the following ground before us : That the ld. CIT(Appeals) was not justified in treating short term capital gains as an adventure in the nature of trade. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part were sold because of an unexpected spurt in prices and the remaining were retained. IV. Part shares were sold to try and repay the loan at the earliest as the appellant was a person of limited means and did not wish to carry a liability for long. V. Buying bulk shares for increasing stake in group companies by raising softloans does not indicate intent to deal in shares. VI. The shares were held for a sufficient ly long period of time for them to qualify as investments. VII. The shares purchased were only of one company which was predominantly family owned. VIII . The profit earned on sale of part shares was only incidental . IX. Engaging a broker for purchase and sale of the shares cannot be vital for determining t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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