9911796707
TMI Blog2016 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of shares and units of Mutual fund as detailed below:- Gains on sale of shares - 88,10,874 Gains on redemption of units - 2,28,22,833 3,16,33,707 The assessee had brought forward short term capital loss of the earlier years and hence adjusted the same against the short term capital gain of the current year. The AO, however, took the view that the gains arising on sale of shares is assessable as Business income and accordingly assessed the same. The AO took into consideration, the volume and frequency of transactions, funding position, repetitive nature of transactions, quantum of dividend receipts etc. to support his conclusion. In the appeal filed by the assessee, the Ld CIT(A) agreed with the contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase and sale of mutual fund units, i.e., out of Rs. 316.33 lakhs of gains, the assessee has earned a sum of Rs. 228.22 lakhs from purchase and sale of mutual fund units. We notice from the details of mutual funds investments that the assessee has invested huge amounts in certain schemes and redeemed the same on making certain gains. We notice that that the assessee has made investments in different schemes of various mutual fund companies and there is repetition only in respect of two schemes. The prices of mutual fund units move in tandem with the movement of index of share markets and hence the assessee appears to have sold the units of mutual fund on making certain gains. The only negative factor in this group is the low holding pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rader. (f) The borrowings have been used to give advances. The analysis of balance sheet of the assessee shows that the advances given by the assessee are always in excess of the borrowings. During the year under consideration, the borrowings were Rs. 8.26 crores and the amount lent by the assessee was Rs. 11.39 crores. (g) The assessee is having own capital of Rs. 18.21 crores and the investments balance available at the year end is Rs. 16.12 crores. Thus, the personal capital has been used to make investments. (h) The assessee has disclosed purchase of shares as his investment in the books of account. (i) In the past years also, the assessee has declared gains arising on sale of shares under the head "Capital gains" only. The AO has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ang Vs. CIT (1992)(193 ITR 321). Accordingly the Ld CIT(A) held that the assessee is an investor and not a trader during the year under consideration Accordingly he allowed the appeal of the assessee. 5. We heard the parties and perused the record. The Ld D.R strongly supported the order passed by the AO and contended that the assessing officer has analysed the facts prevailing in the instant case in a proper perspective. On the contrary, the Ld A.R supported the order passed by Ld CIT(A) by submitting that the Ld CIT(A) has addressed each and every observations made by the AO. He submitted that the Ld CIT(A) has followed the binding decision of Hon'ble Bombay High Court in deciding this issue in favour of the assessee. He further submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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