AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (12) TMI 112
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....O) u/s.143(3) of the Income Tax Act, 1961 [hereinafter refer to as the "Act"]. The grievances raised by the assessee are as follows:- "1. The Id. CIT(A) has grievously erred in law and on facts in treating the short term capital gain [STCG] of Rs. 30,57,137/- as business income out of total STCG of Rs. 41,55,817/- treated by the AO as business income merely on surmises and assumptions as well as without proper consideration and appreciation of the facts of the case and evidences available on record. In view of the facts and elaborate submissions filed coupled with legal position as laid down by the jurisdictional court of law apart from other courts, the impugned action on part of the AO requires to be quashed and the said amount of Rs. 3....
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....nts in the assessee's balance sheet. It was also observed that during the year, simultaneously the assessee had shown business income of Rs. 13,43,609/- from share trading and separate trading and Profit & loss account was maintained by the assessee for share trading. During the course of assessment proceedings, the assessee was asked to show cause as to why the short Term Capital Gain of Rs. 41,55,817/- should not be treated as business income of the assessee looking to the frequency of transaction involved. 3. In response, the assessee submitted before assessing officer that on purchase or sale, if delivery is made then the profit of the same is treated as short term capital gain irrespective of the number of days held 4. The Assessing ....
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....ar came to Rs. 77,413/-, which is very nominal as compared to the short term capital gain of Rs. 41,55,817/-which shows that the motive of the assessee is to earn profit from the share trading. Further, the portfolio statement of the trading of shares reveals that the holding period in these shares were very short period starting from one day to less than 30 days. On careful analysis of the working given by the assessee it was noticed by Assessing Officer that short term capital gain of Rs. 30,57,137/- was gained from scrips held by the assessee for less than 30days and the balance amount of Short Term Capital Gain of Rs. 10,98,679/- was earned from 30 days to one year. From this statement of transactions and the short term capital Gain ear....
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....ish the judgment of the Co-ordinate Bench of ITAT in the case of Shri Sugamchand C Shah, vide ITAT, Ahmedabad Bench 'D' order dated 29.01.2010 in ITA No. 3554/Ahd/2008 and 1932/Ahd/2008 and finally he prayed the Bench that activity of sale/purchase of shares of the assessee may be treated as investment activity. 8. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and is not being repeated for the sake of brevity. 9. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case i....
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....urchasing shares as trader in comparison to shares held for more than 30 days. The following table, as referred by ld. CIT(A) shows the frequency of transactions: Period of Holding Purchases (in Quantity) Purchases (in Value) Sales (in Quantity) Sales(in Value) Total Amount (in Value) Within 30 Days 435544 Rs. 3,35,83,570 435544 Rs. 3,66,40,708 Rs. 30,57,137 More than 30 Days 156273 Rs. 74,87,688 156273 Rs. 85,86,368 Rs, 10,98,679 Grand Total 591817 Rs. 4 1071 259 591817 Rs. 4,52,27,076 Rs. 41,55,817 At the assessment stage the Assessing Officer also found that the assessee has shown STCG of Rs. 41,55,817/- from trading of shares even though the same is held as investments in the balance sheet. The AO also noticed t....