TMI Blog2011 (12) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 2,75,81,176/-, income from share trading business of ₹ 20,127/-, dividend income of ₹ 36,37,401/- and speculation income of ₹ 12,614/-. The AO observed that the assessee was regularly buying and selling shares with high volume. The AO also observed that though the assessee claimed that no interest had been paid on borrowed funds, the fact was that the assessee had borrowed fund, which had been utilized for the purpose of making investments in shares. The assessee had dealt in 70, scripts resulting into Long Term Capital Gain and 33 scripts, resulting into Short Term Capital Gain. The assessee was also indulging into speculative transactions. Considering the frequency, volume and regularity of transactions, the AO concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal. 3. Before us, the Ld. AR for the assessee submitted that the assessee had been an investor for a long time and the department in the Assessment Years 2003-04 and 2004-05 had accepted the claim of the assessee as investor in shares, in orders passed u/s.143(3). In the Assessment Year 2005-06, CIT(A) had treated the Short Term Capital Gain as business income, but the decision of the CIT(A) was set aside by the Tribunal, who had accepted the Short Term Capital Gain declared by the assessee in the order dated 28.02.2011, in ITA No.534/Mum/2009. It was also submitted that the factual position in this year was similar. In Assessment Year 2007-08, which was the subsequent year, similar income declared by the assessee as Short Term Capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,004/-. The assessee had also shown small income from trading, for which separate accounts had been maintained. Further, in the Assessment Years 2002-03 and 2004-05, the AO himself accepted the similar income declared by the assessee as capital gain. The capital gain declared by the assessee was again accepted by the AO for the Assessment Year 2007-08 u/s.143(3). Considering the facts and circumstances of the case, in our view, it will not be appropriate to assess the income declared by the assessee from sale and purchase of shares as business income. We see no infirmity in the order of the CIT(A) accepting the claim of the assessee particularly, when the similar claim had been accepted by the Tribunal in Assessment Year 2005-06 and depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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