2013 (6) TMI 730

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..... 3 & 4 are alternative plea and so also the additional ground depending upon the outcome of the decision in ground Nos. 1 & 2. 3. During the course of the assessment proceedings, the Assessing Officer noticed that the assessee shown salary income from RP securities Pvt. Ltd., income from profession, capital gains in shares and securities. During the year under consideration, the assessee has shown STCG of Rs. 83,15,790/-, LTCG of Rs. 38,88,313/- in addition to other income. The AO sought clarification from the assessee as to why the assessee's share transaction activities should not be treated as business activity instead of being an investment activity as claimed by the assessee. 3.1. The assessee submitted a detailed reply on 26.10.201....

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....the findings of the AO that the assessee has carried out transaction in shares in a business like manner. 5. Aggrieved by this finding of Ld. CIT(A), the assessee is before us. 6. Before us, the Ld. Counsel for the submitted that the assessee is a full time Doctor and is engaged in his profession extensively. Therefore, he has no time to indulge in trading activities in the stock market. The Ld. Counsel for the assessee further submitted that in the past years also the assessee had shown purchase of shares as investment which has been accepted by the Revenue authorities. The Ld. Counsel strongly submitted that during the year under consideration, the total No. of purchase transactions were 109, No. of scrips whose shares are acquired were....

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....in the knowledge of the assessee who holds the shares and it should, in normal circumstances, be in a position to produce evidence from its records as to whether it has maintained any distinction between those shares which are its stock-in-trade and those which are held by way of investment. These observations by the Hon'ble Supreme Court in the case of CIT Vs Associated Industrial Development Co. (P) Ltd. 82 ITR 586 squarely apply on the facts of the present case. It is not in dispute that all the transactions under reference entered into by the assessee have been settled by actual delivery of shares and the money is actually paid and received in each and every case; whereas in case of a trader, ordinarily, the transactions are settled wit....