TMI Blog2010 (9) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... is engaged in trading activity and not in investments. 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any grounds of appeal at any time before or during the hearing of this appeal. 2. The assessee in the present case is engaged in the business of nonbanking finance activity. The income of ₹ 3,38,01,510/- accruing to the assessee in respect of 344 securities was declared under the head short term capital gain . The AO did not accept such claim of the assessee and assess that income under the head business . Ld. CIT(A) has accepted the claim of the assessee on the basis of ITAT dated 12.3.10passed in ITA No. 1570/Del/08 in respect of A.Y. 2005-06. It is against that order of CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst long term capital loss. The assessee has also declalred income from speculation gains/loss which are on account of sale and purchase of shares without delivery of the shares. During the year under consideration, the assessee had also claimed long term capital loss of ₹ 1,02,31,691/- on sale of shares which were hold by the assessee as investment and duly reflected in his Balance sheet as investment. Similar transaction of sale and purchase of shares are being carried out by the assessee in preceding years, details of which have been filed on record. In addition to the capital gains received from sale of shares the assessee had declared income from dividend received from the said shares being held as investment by the assessee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Surplus from Leasing Consultancy Business 1,70,802 Loss from trading business of shares/securities. (-) 2,64,862/- Capital Gains from sale of shares and Mutual Fund Units. For theperiod from 1.4.2004 to 30.9.2004. Long Term 1,95,016 Short term (-) 4,92,016 For the period from 1.10.04 to 31.3.05. Long term. 3,70,510 Short term:- -Taxable at No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 111A of the Act. The case of the assessee is that facts are identical with regard to long term capital gain and short term capital loss during 1.4.2004 to 30.9.2004 and also regarding long term capital gain of ₹ 3.70 lakhs and short term capital gain of ₹ 4.95 lakhs which is taxable at the normal rate of tax then how the Assessing Officer can say that only those short term capital gains which are taxable at concessional rate of tax u/s 111A is taxable as business income. In the light of these peculiar facts of the present case, we are of the considered opinion that no case has been made out by the Assessing Officer to treat this part of short term capital gains as business income after accepting the claim of the assessee re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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