2015 (5) TMI 828

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.... the assessee by referring the written submission made before the Assessing Officer at pages 30 to 32 and at pages 35 to 43, contended that since the assessee-company has maintained the accounts with applicable accounting standards, the investments which have been classified as long term or carried at cost whereas the shares kept in the portfolio of the stock-in-trade has been valued at market rate. He further submitted that the total number of transactions with purchases as well as sales are 220 in number and the ratio between purchase and sale is 59:41 and the holding period in respect of 77 sale transactions are more than 12 months and 13 transactions which is less than 12 months. Under these circumstances he requested to uphold the orde....

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..... The systematic, organized and planned manner of transactions together with volume and frequency of transactions point to the only conclusion that the shares could not have been purchased for investment. This conclusion is also strongly supported by the Hon'ble Supreme Court in the case of Dalhousie Investment Trust Co. Ltd. vs. CIT (68 ITR 486). In view of the above discussion the total amount of Capital Gain for Rs. 39,18,709/- as shown by the assessee in its return of income is being taken as Business Income instead of Capital Gain as claimed by the assessee. " The assessing officer has laid stress on motive. To begin with motive is something, which is locked in the mind of the person. No direct evidence as regards motive is possible....