TaxTMI 
TaxTMI 
2015 (2) TMI 851
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....bsp; "Whether, on the facts and the circumstances of the case and in law, the hon'ble Income-tax Appellate Tribunal was correct in treat ing the income from adventure in the nature of trade as short-term capital gain ?" 2. A few facts relevant for the decision of the controversy involved, as narrated in the appeal may be noticed. The assessee disclosed short-term capital gains at Rs. 67,41,488 in her return of income which was treated by the Assessing Officer as income from adventure in the nature of trade as the income was treated as business income. The Assessing Officer drew support from the Central Board of Direct Taxes Instruction No. 1827, dated August 31, 1989, and Circular N....
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....ulting from an adventure in the nature of trade. On the other hand, where income accrues on realisation of investments consisting of purchase and resale, income accruing could be treated as adventure in the nature of trade. The cardinal question which would require to be answered would be whether a purchaser was a trader and had purchased the commodity with the clear understanding that it was his usual trade or business or incidental to it. 6. Adverting to the factual matrix in the present case, it may be noticed that the assessee purchased some shares. When the rates of the said shares had risen, the assessee decided to sell part of the shares with a view to repay the loan already taken. According to the assessee, the investment in shares....
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....p; 'I. That the assessee is not a business person and she hardly ever indulged in any purchase or sale of shares in the past. She has no knowledge of the share market or equities that are traded in it. II. The majority of the shares purchased were of the group companies only, indicating the lack of intention to deal in the shares. III. Out of the total shares purchased, only a part were sold because of an unexpected spurt in prices and the remaining were retained. IV. Part shares were sold to try and repay the loan at the earliest as the appellant was a person of limited means and di....