2014 (4) TMI 283

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.... its business income''. The facts briefly for the purpose of this appeal are that the assessee deals in shares. It declared a total income of Rs.83,78,279/-. During scrutiny, it was discerned that the assessee had also invested and sold mutual funds apart from shares. The AO also found that the assessee derived income from interest, dividend and surplus realized on sale of shares and mutual funds. As to the precise issue of the sale of mutual funds, the facts appearing on the record are that the assessee had invested in these funds and shown them in its investment account and had not characterized it as stock-in-trade. This position apparently had been reported and accepted for the previous years. Furthermore, it appears that the assesse....

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....t by the ITAT were justified. The CIT (A) in his order recorded as follows: - ''i. Assessee has employed its own funds out share capital and accumulated free reserves that there was no borrowing at any time.    ii. Assessee's is lacking proper infrastructure and is only holding Rs.2.02 lacs (WDV Rs.1.39 lacs) worth of fixed assets.  iii. Assessee has only one employee to whom an aggregate salary of Rs.60,000 has been paid.  iv. Assessee's treatment of mutual fund as investment is consistent since 2002-03, even when no special privileges of any tax concession was available. Merely because subsequently assessee is entitled to some benefits/tax concessions, the whole transaction cannot be now pulled under the....