2014 (8) TMI 112

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....e from business by ignoring the decision of Hon'ble Mumbai ITAT in the case of ACIT-21(3) Vs V. Nagesh ITA No. 5410/M/2008 dt. 24.9.2009, Jayshree Pradeep Shah Vs ACIT 25(2) ITA No. 3608/M/07 dt. 24.2.2010 and Smt. Sahana Navera Vs ACIT 25(3) ITA No. 2586/M/09 dt. 26.3.2010." 3. Return for the year was filed on 2.10.2008 declaring income at Rs. 1,30,92,306/-. The return was selected for scrutiny assessment and statutory notices were accordingly issued and served upon the assessee. 3.1. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has shown total income of Rs. 1,30,92,306/- which included Short Term Capital Gain (STCG) from sale of shares Rs. 1,29,45,753/- and Long Term Capital G....

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....k-in-trade. Further, the assessee has not incurred any expenditure that can be attributed to any kind of business. According to the Ld. CIT(A), it is difficult to conceive a business to the magnitude of receiving of Rs. 1,39,95,626/- as business profit in the trading of shares without any expenditure attributable to the impugned business. The Ld. CIT(A) further observed that there is no adverse material on record to suggest that at any point of time the assessee had transferred shares from the investment portfolio to the business stock. The Ld. CIT(A) was convinced that the assessee had no intention to indulge in the business of share trading. The Ld. CIT(A) accordingly directed the AO to accept the LTCG and STCG as disclosed by the assesse....

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....ealing, for, his own purposes, and hold it apart from the stock-intrade of his business. There is no presumption that such an acquisition, even if it is an accretion to the stock-in-trade of the business, is an acquisition for the purpose of his business: in each case the question is one of intention to be gathered from the evidence of conduct and dealings by the acquirer with the commodity." 9. In Associated Industrial Development (supra), the Supreme Court observed as follows:- "....it was open to the assessee to contend that even on the assumption that it had become a dealer and was no longer an investor in shares the particular holdings which had been cleared and the sales of which had resulted in the profit in question had always bee....