TMI Blog2011 (3) TMI 1728X X X X Extracts X X X X X X X X Extracts X X X X ..... he only effective ground pressed is that the learned Commissioner of Income Tax (Appeals) erred in sustaining the findings of the learned Assessing Officer that income of ₹ 19,12,858/- on sale of shares are business income as against capital gains disclosed by the assessee. 4. The crux of arguments on behalf of the assessee is that the assessee has two port folios for which our attention was invited to pages 42 to 48 of the paper book. Our attention was further invited to page 1 of the assessment order and para 4.1 (page 7) of the impugned order. Reliance was placed upon the decision in Kunvarji Nonji Kenya; 131 TTJ 87 (Mum) (page 214), CIT v. Rewashankar A. Kothari; 155 Taxman 214 (Guj) and Janak S. Rangwala; 11 SOT 627 (Mum). On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thrust of argument is reliance on the decision in the case of Kunvarji Nanji Kenya and Janak S. Rangwala (supra). We have perused these orders. In the case of Kunvarji Nanji Kenya (supra) the issue before the Hon'ble Mumbai Bench pertained to treatment of ₹ 1,49,70,251/- being the share trading income as business income instead of short term capital gain shown by the assessee. The assessee continued to derive income from capital gain and other sources. It was noticed by the Assessing Officer that there were numerous transactions on daily basis in large quantity of shares, profit from which was shown as short term capital gain. The claim of the assessee was that he earned substantial dividend income of ₹ 1.36 crores and the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. The intention of the assessee is not to restrict himself as investor and the intention is to earn more and more profit from trading in shares and securities regularly. The claim of the assessee is that he maintains business port folio consisting of secured transaction separate from investment port folio. However, the assessee has set off speculative loss (from squared up transaction) of ₹ 12,731/- from short term capital gains of ₹ 19,25,589/-. If the cumulative effect of the facts available before us is analysed, admittedly it emerges that the transaction entered into by the assessee of various shares is that of a trader and not of an investor because the volume and frequency of trading is very substantial, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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