2014 (12) TMI 1237

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....nt by: Shri Love Kumar O R D E R PER N.K. BILLAIYA, AM: This appeal by the assessee is preferred against the order of the Ld. CIT(A)-29, Mumbai dt.8.7.2010 pertaining to A.Y.2006-07. 2. The sole grievance of the assessee is that the Ld. CIT(A) erred in confirming the AO's action to treat the Short Term Capital Gain on sale of shares amounting to Rs. 17,26,855/- as business income of th....

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....s business profit. It was explained that the assessee is an investor and was investor in past years also. The profit was booked on the allotment of the shares of FCS Softwares Solutions Ltd as the assessee has taken cautious view like a prudent investor. The explanation of the assessee did not find favour with the AO. The AO observed that the assessee has applied for the IPO of FCS Softwares Solut....

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.... applied for the shares of FCS Softwares Solutions Ltd through IPO. The assessee explained that after he has sold the shares at an average rate of Rs. 228/- per share the share price came down to Rs. 93.60 within one month and therefore being a prudent investor, the assessee's decision for selling the shares at the right time has earned him Short Term Capital Gains. The Ld. Counsel further stat....

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....apital cannot be a ground for treating the capital gains as business income. The IPO funding availed by the assessee was to get more allotment but the fact of the matter is that the assessee was an investor and the sole intention of applying in the shares through IPO was to get higher allotment of shares. We also find that there are no repetitive purchase and sale of the same script which means th....