TaxTMI 
TaxTMI 
2014 (3) TMI 330
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....nsaction as 'Income from Business & Profession' as against the claim of assessee as 'Capital Gain'. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not considering the fact that the assessee's business activity is trading in shares and as per CBDT Circular No. 4/2007 dt. 15.06.2007 as well as the decision of the Hon'ble ITAT, Mumbai in the case of ACIT vs. Nagesh (ITA No. 5410/Mum/2008), stating that wherever the assessee is trading in shares, the income should be taxed as 'Business Income'." 3. Though notice was sent through the Revenue (The Departmental Representative submitted that the notice was served upon the assessee) none appeared on behalf of the assessee. We, therefore, proceed to dis....
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....not purchase and sell shares through one broker and no separate D-mat account was maintained to differentiate between trading and investment activities. He has also taken into consideration the holding period of shares and other factors to come to the conclusion that the assessee, during the year under consideration, purchased and sold shares only with a view to make profit out of such transactions and, therefore, the income earned therefrom is assessable as business income. He concluded accordingly. 5. Aggrieved, assessee contended before the CIT(A) that it has purchased shares and held them as investment; therefore upon sale of such shares the income earned thereon is attributable to either long term capital gains or short term capital g....
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....hares and thus obtained equity shares numbering 48600 which was also reflected in the Balance Sheet of A.Y. 2005-06. Further, the assessee had neither borrowed any funds nor was engaged in speculative trading. Under theses circumstances the AO was not justified in coming to the conclusion that the said transactions are of trading nature. It was also submitted that these are of delivery based transactions and properly reflected in the books as investments. 6. Having regard to the undisputed facts the learned CIT(A) set aside the order of the AO on this issue and held that the income from sale of shares held as investment gives rise to long term capital gains/short term capital gains and the same should not be treated as income from business....