TMI Blog2015 (4) TMI 1249X X X X Extracts X X X X X X X X Extracts X X X X ..... onger period and for appreciation of value but the sale of the shares within a short period of time and within a period of one week in the most of the cases clearly manifest the intention of the assessee that the transactions were not undertaken by the assessee with a view to keep the same as investment. Accordingly, we do not find any error or illegality in the orders of the authorities below. - decided against assessee. - ITA No.9083/M/2010 - - - Dated:- 27-4-2015 - SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER Assessee by : Smt. S.U. Chhabria, A.R. Revenue by : Shri Love Kumar, D.R. O R D E R Per Vijay Pal Rao, Judicial Member: This appeal by the assessee is directed against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has been showing the profit on sale and purchase of shares as short term capital gain which was accepted by the AO and therefore for the year under consideration the AO is not allowed to take a different view. The Ld. A.R. has further contended that only because the assessee is having the speculative transaction in the trading of shares the investment of the assessee cannot be treated as trading activity and therefore the short term capital gain offered by the assessee cannot be treated as business income. The Ld. A.R. has referred the judgment of the Hon ble Jurisdictional High Court in the case of CIT vs. Gopal Purohit 336 ITR 287 and submitted that it was open to the assessee to maintain two separate portfolios one relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions carried out by the assessee during the year under consideration, therefore on the issue of the nature of transaction no precedent can be applied as it is a factual issue and has to be decided on the peculiar facts of each case. The Ld. D.R. has further pointed out that there is no consistency even in the treatment of these activities by the assessee itself because for the A.Y. 2006-07 the assessee itself has offered the profit from sale and purchase of shares as business income which was accepted by the AO while passing the assessment order under section 143(3) vide order dated 17.07.08. Thus, the Ld. D.R. has submitted that the rule of consistency, if applied, will go against the assessee because in the immediate preceding year the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of listing itself except on about five occasions when the assessee sold the shares after one month of the listing. Thus, there is no quarrel on the fact that the intention of the assessee in carrying out the transaction of sale and purchase of shares is to earn the profit at the earliest possible occasion as and when there is a rise in the price. The assessee is moving as per the movement in the stock market and at the first available opportunity, the assessee is selling the shares without holding the shares for any longer time. This type of activity of sale and purchase cannot be regarded as investment but the sole purpose and motive of sale and purchase of shares is reflected as to earn the profit at the earliest occasion. As regards the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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