2016 (12) TMI 1002

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....f income for the year under consideration declaring a total income of Rs. 29.52 lakhs. The total income included short term capital gain of Rs. 48,96,441/- arising on sale of shares, against which brought forward short term capital loss of Rs. 30,47,389/- was adjusted. The AO took the view that the assessee is carrying on purchase and sale of shares in a systematic and organized way. Further the volume of transaction was also considered to be very high. It was also seen that the assessee is carrying on the activity year after year. Accordingly he took the view that there is continuity and regularity in purchase and sale of shares. Accordingly he held that the assessee is carrying on shares trading activity as a trader and not as investor. H....

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...., 4 scrips are out of earlier year. This is evident from page 13 of the paper book. The closing investment is only in scrips of 6 companies and same is evident from page 15. 5. The Revenue has accepted the capital gains on similar facts in all the assessment years except the year under consideration. Assessment for A.Y. 2009-10 and 2013-14 has been made under section 143(3) of the Act. The assessment order and the details for A.Y. 2009-10 are at pages 31, 35 and 40 of the paper book and assessment order for A.Y. 2013-14 is handed over across the bar, 6. Out of short-term capital gain of Rs. 48.96 lakhs, Rs. 1.6 lakhs is on account of holding of shares which are less than 1 month, Rs. 30.20 lakhs is on account of shares hel....

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.... 11. The assessee relies upon the submissions made before CIT(A) and which are at page 1 of the paper book." 4. The Ld D.R, on the contrary, supported the order passed by Ld CIT(A). 5. We have heard the parties and perused the record. We notice that the Ld CIT(A) has observed that the assessee has borrowed funds from a family member and her spouse. The Ld A.R pointed out that they are interest free funds, meaning thereby, the assessee did not incur any interest expenditure. In the written submissions, the assessee has also given reasons for receiving lower amount of dividend income. The Ld CIT(A) has observed that the assessee has dealt in 196074 number of shares. The assessee has pointed out that she has dealt in only 12 scrips, out ....