TMI Blog2016 (4) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... while dealing in shares and has shown it as a speculation loss. The varieties of income from long term capital and short term capital gain from shares, dividend income and speculation loss in F & O transactions shows that assessee has been regularly involved in shares related activities in the year under appeal as well as in past also. Assessee’s investments in shares have increased from ₹ 3.54 crores in FY 2002-03 to ₹ 5.43 crores in FY 2005-06; whereas business turnover has drastically decreased from ₹ 3 crores in FY 2002-03 to ₹ 0.64 crores in FY 2005-06. We further observe that major portion of net profit which was flowing out of the business activities upto FY 2002-03 have shifted to the investments income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aise additional grounds of appeal. 2. Briefly stated facts are that the assessee is a Private Limited company mainly engaged in the business of pharmaceuticals, research, development laboratory and investment activities. The assessee filed its e-return on 19.12.2006 declaring total income at ₹ 3,49,120/-. The case was selected for scrutiny assessment and notice u/s 143(2) of the Act was issued on 10.10.2007 which was duly served. The case was discussed and information required by the Assessing Officer were furnished. Assessment was completed by assessing the income at ₹ 32,68,295/- and speculation loss on account of F O transactions of shares at ₹ 2,,67,692/- by accepting the claim of assessee. While framing the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s capital gains and not as business income. 7. On the other hand, ld. DR supported the orders of lower authorities. 8. We have heard rival contentions and perused the material on record. The only issue before us is to examine the taxability head for income from sale of shares as to whether it has to be treated as capital gains or income from business. From going through the record, we find that the assessee company is mainly dealing in pharmaceuticals, laboratory works and research and development since last many years and coupled with these activities assessee company has also earned income from investments in the form of long term and short term capital gain. Further from going through the computation of income we find that assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.42 cr. 1.77 cr. 0.22 cr. 0.44cr. 9. From broad analysis of the financial data of the assessee as per the table referred above we find that assessee s investments in shares have increased from ₹ 3.54 crores in FY 2002-03 to ₹ 5.43 crores in FY 2005-06; whereas business turnover has drastically decreased from ₹ 3 crores in FY 2002-03 to ₹ 0.64 crores in FY 2005-06. We further observe that major portion of net profit which was flowing out of the business activities upto FY 2002-03 have shifted to the investments income so much so that in the year under appeal net profit of the assessee is ₹ 0.44 crores which is equivalent to the other income a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered into for a very short duration and the-whole .activity is so regular that they have to be categorized as regular business activities. Before me, no evidence/documents have been filed to rebut the findings-of the AO. It is therefore held that the AO was justified in his action. Accordingly the grounds no.2,3 4 are dismissed. 11. From going through the order of ld. CIT(A) we find the same to be a non-speaking order because of following two reasons :- (i) No evidence/documents were filed by the assessee to rebut the findings of the Assessing Officer before ld. CIT(A). (ii) No analysis was made by ld. CIT(A) from the available assessment records. 12. We are, therefore, of the view that looking to the facts and figures of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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