Short-term capital gain classification upheld for share transactions where factual findings supported investment treatment over business income.

Income from share transactions was assessed as short-term capital gain rather than business income because the factual matrix, including the nature of the transactions, book treatment and purchase intention, supported the assessee's classification. The High Court held that the concurrent findings of the appellate authority and Tribunal accepting the bifurcation between investment, business and speculative transactions were based on evidence and were a possible view. Frequency and volume of transactions, by themselves, were not decisive, and no material issue was left undecided. The finding that the income was short-term capital gain was therefore not perverse and the challenge failed.

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Issues: Whether the finding that the income from share transactions was assessable as short-term capital gain, and not business income, was perverse.

Analysis: The assessment turned on appreciation of facts and evidence, including the nature of the transactions, treatment in the books, and the intention at the time of purchase. The concurrent findings of the appellate authority and the Tribunal accepted the assessee's bifurcation between investment, business, and speculative transactions. The frequency and volume of transactions, by themselves, were held not to be decisive. The Court found no basis to hold that the concurrent view was not a possible view or that any material issue had been left undecided.

Conclusion: The finding that the income was short-term capital gain was not perverse and the issue was answered against the Revenue.

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