2010 (3) TMI 1208

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....sactions as "business income" was not correct despite the fact that the transactions were repetitive , numerous and purchase and sale of shares had been resorted to within a span of time with an intention to earn profit. Reliance is placed on the decision of the Hon'ble ITAT, Ahmedabad Bench in the case of DCIT vs. Smt. Deepaben Amitabh Shah (2006, 100 TTJ)(Ahd) 1065)." 3. During the assessment proceedings, the AO noticed that frequent transactions have been made on account of purchase and sale of shares. The AO made an analysis to find out the periodicity, multiplicity and repetitiveness of the transactions of the assessee. On the basis of these findings, the main motive of the assessee regarding earning profit or making investment was an....

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.... he cannot be a trader and carry on the business of share trading activity. (ii) Out of the total funds at the disposal of the assessee 95.45% of the funds are from own funds. (iii) The appellant has showing the shares purchased as investment in the balance sheet for the past several years and accordingly, this should only be considered as an investment and not as stock in trade. (iv) The ratio of purchase to sale in case of profitable transaction is 80% whereas in case of loss transactions it is 82%. These facts prove that the appellant is not a trader who will run away with small profit or would cut losses (v) The appellant has earned dividend of ₹ 8,36,125/- on a closing investment of ₹ 2.77 Cr. This also proves that ....