2018 (12) TMI 594

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r income from business or profession? 3. Brief facts are, the assessee, an individual, filed his return of income for the impugned assessment year on 24th September 2010 declaring income of ` 1,30,75,858. During the assessment proceedings, the Assessing Officer after verifying the return of income and other materials on record found that income of ` 1,14,79,724 from sale of shares shown as short term capital gain constitutes 86.8% of the total income offered by the assessee. Therefore, the Assessing Officer wanted to verify the details of share transaction. After verifying the details furnished by the assessee, the Assessing Officer observed that out of total 89 scrips assessee has earned both long term capital gain and short term capital ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....income, income derived from shares held for more than 30 days are regularly treated as investment and income derived therefrom are offered as capital gain. He submitted, assessee was following the aforesaid method consistently from the very inception of share transaction activity and there is no change in facts in the present assessment year. He submitted, during the year, due to volatility in the market the assessee has sold some of the investment on short term basis. However, mere increase in number of scrips or number of transactions cannot be the sole criteria for considering the capital gain as business income. The learned Authorised Representative submitted, the assessee has not utilized any borrowed funds for investment in share and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nsidered rival submissions and perused materials on record. As could be seen from the facts on record, the assessee is carrying on the activity of share transaction since past so many years. It is the contention of the assessee that it maintains two separate portfolios for investment activity as well as business activity. From the material on record, it is evident, in the majority of cases the assessee held the shares for a substantially long period. As stated before us, the income derived from intra-day transaction has been offered as business income by the assessee himself. Further, at this stage, the assessee has also agreed to offer the income derived from sale of shares held for less than 30 days as business income. It is also undisput....