AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (1) TMI 852
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....Ld CIT(A)-26, Mumbai against the quantum assessment orders of respective years. The revenue has filed appeal for assessment year 2007-08 challenging the cancellation of penalty levied u/s 271(1)(c) of the Act for that year. All these appeals were heard together and hence they are being disposed of by this common order, for the sake of convenience. 2. In all the appeals filed by the assessee, the common issue urged relates to the assessment of short term capital gain arising on sale of shares as Business income of the assessee. 3. In the quantum appeals filed by the revenue, the common issue urged is against the decision of Ld CIT(A) in holding that the gain arising on sale of shares held for more than 12 months is assessable as Long term ....
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....o the assessment year 2007-08, the assessee had started her profession. Besides professional income of Rs. 57,477/-, the assessee also declared short term capital gain of Rs. 196.39 lakhs and Long term capital gain of Rs. 202.65 lakhs, both arising on sale of shares. The Long term capital gain was claimed as exempt u/s 10(34) of the Act. By the time the assessment of AY 2007-08 was taken up for scrutiny, the appeal filed by the assessee challenging the assessment order of AY 2006-07 had been disposed of by Ld CIT(A) by confirming the assessment of Short term capital gain as Business income. However, the Ld CIT(A) had directed the AO to assess the Long term capital gain as Capital gains only. However, the assessing officer chose to assess bo....
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....easonable period. The assessee has used her own funds and interest free funds for making investments and further the shares have been shown as investments only in her books of account. Further the shares have been shown at purchase cost only in the Balance Sheet. He further submitted that the assessee has not indulged in repetitive transactions barring one or two exceptions. He further submitted that the assessee has dealt in only few scrips and since the assessee had purchased shares in high quantity, the volume appeared to be high. 12. He further submitted that the assessing officer has chosen to assess the gains arising on sale of shares as business income only by considering the gains declared by the assessee without making a proper ca....
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.... has to be decided on the basis of various criteria, which have been given as illustration by the Courts and also by CBDT in its circular. Some of the main criterias are the intention of the party at the time of purchasing of shares, his conduct thereafter, the manner of funding, holding period of shares, dividend received, other activities of the assessee etc. One has to examine various factors and should take a holistic view of the matter. Considering the various factors, we shall examine the facts prevailing in the instant case. 15. We have earlier noticed that the assessee is a medical doctor by profession specializing in dermatology. Hence it cannot be considered that her main activity is dealing in shares. Next we have examined the B....
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....ansactions and hence generally the shares purchased by the shares have been sold after holding the same for a reasonable period and repurchase of same shares are very minimal. 17. The assessee has not prepared any profit and loss account and all her revenue transactions have been routed through her Capital account. A perusal of the same shows that the assessee did not employ any staff or established any set up for carrying out the activity of purchase and sale of shares. 18. We have earlier noticed that the decision taken by the assessing office in AY 2006-07 was followed in other years. In assessment year, the assessing officer has considered following points to hold that the assessee has dealt in the shares as a trader:- (a) The holdi....