2014 (5) TMI 321

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....he assessee, an individual, declared a sum of Rs.79,65,790/- for A.Y. 2007-08 which included short-term capital gain taxable at the rate prescribed under Section 111A, of Rs.57,54,446/-. She paid 10% of that as tax on short-term capital gain. She also reported other income with which this Court is not concerned with in the present appeal. Before the assessing officer, it was contended that though a single transaction purchase and sale of the shares was in truth an investment and accordingly has to be treated as short-term capital gain. After analysing the nature of transaction, the assessing officer was of the opinion that the income was not short-term capital gain and really amounted to a business income. This view was upheld by the CIT (A....

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.... so as to justify the finding that the amount in question was a business income. The CIT (Appeal) in his order very pertinently noted the following facts: - "i) The claim of the appellant that she had purchased shares (STT paid) in Oct. 2006 is not supported by the contract notes and or holding statements of broker/ sub broker/ agent on day to day basis maintained and generated by the depository. There is mere a letter dated 27.10.2006 of M/s. Regent Financial Services (A copy of the same is enclosed as annexure-A) ?showing the purchase of the shares but the undisputed fact is that the appellant has neither paid any purchase price on 27.10.2006 nor taken delivery of shares in her Demat account on 27.10.2006. ii) The appellant has r....