TMI Blog2012 (4) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... clared short term capital gains at ₹ 61,69,670/-. The assessee was asked to explain as to why short term capital gain in shares should not be treated as business income. In response, it was submitted by the assessee that the assessee is making investments in shares since assessment year 1990-91 and is regularly earning income as capital gains on sale of investment and dividend. The assessee after giving details of investment, dividend income and capital gains earned for the last five years further submitted that the assessee has sold equity shares during the year through registered stock-sharebrokers and security transactions tax has been paid on all purchases and sale transactions, therefore, the income may be treated as short term c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the business income treated by AO. (II) On the facts and circumstances of the case and in law, the Ld.CIT(A) has failed to appreciate that assessee has been regularly dealing in shares with the purpose to make short term profit in an organized manner. The number of transaction and volume is more, the holding period of the shares is less than a year and there is repetition of transaction indicating the assessee, conduct is not of investor but of a businessmen dealing in shares. 4. At the time of hearing, the Ld.DR submits that for the reasons as discussed in the assessment order, the Ld. CIT(A) was not justified in directing the AO to treat the gain of ₹ 46,67,010/- as short term capital gain as against the business inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,01,65,062/- whereas the sale is ₹ 1,87,56,217/- (cost price) accordingly, the closing balance as on 31.3.2006 is ₹ 2,08,78,224/-. It is clear from the details as reproduced above, the sale during the year is about 50% of purchase plus opening stock of shares which itself clearly shows that the motive and intention of the assessee of purchase and sale is to retain the same as investment. Further, when these shares are held and treated in the balance sheet as investment at cost price, then in view of the overall facts and circumstances of the case, we do not find any merit and substance in the appeal of the revenue on this issue. Accordingly, we do not find any error or illegality in the order of the CIT(A), qua, this issue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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