2014 (5) TMI 323

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....he assessee, is erroneous. 2. The assessee filed its return for AY 2008-09 on 1.7.2008 declaring a total income of Rs.4,91,39,431/-. In the scrutiny assessment, the AO treated the receipts on sale of shares as business income contrary to the assessee's assertion that it was short term capital gain. The other head of income was 'income from other sources'. The assessee had also apparently declared small amount of dividend income and long term capital gain on sale of shares at Rs.68,786/-. The assessee being aggrieved approached the CIT (A) who by an order dated 8.10.2011 accepted its contentions. 3. In the course of the order, it was noticed by the CIT (A) that the appellant is a HUF managed by Karta comprising of members of th....

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....ts order has carved out the various criteria and tests applicable to determine whether the income reported is a real short term capital gain or business income. Thereafter, the Tribunal held as follows: - "7. Let us examine the facts of the present case in the light of these tests. The first test is how assessee characterize the investment in the books of accounts. We find that assessee has shown the investment in the shares and did not evaluate the shares as per the principle of evaluating closing stock, i.e., on market price or on cost which is lower. The assessee has shown the value at cost as informed by the Ld. Representative. Assessee has not used borrowed funds in the purchase of shares. The Karta of the HUF was in full time employm....