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2014 (5) TMI 921 - ITAT MUMBAITreatment of income – STCG or Business income – Trading in shares and securities - Held that:- The facts are self-speaking , and leave no manner of any doubt of the assessee being engaged in trade in shares and securities - in all its various aspects, even as for tax purpose a different treatment is to be accorded thereto, viz. speculative or non-speculative - It is this that prevailed with both the authorities below, to in fact no rebuttal by the assessee, with the primary facts being not in doubt or dispute - the treatment accorded in books, which was found to be not in agreement with the activity in-as-much as the assessee has clubbed its entire shareholding under one head, is not conclusive of the matter. The Revenue has rightly considered the income declared by the assessee as STCG as 'business income' - its quantum would require to be reworked - The assessee has claimed interest expenditure at Rs.20.50 lacs – it would require being apportioned against different businesses, as well as, where so, investment activity - The AO has considered the entire interest against interest income falling under the head 'income from other sources', which is inconsistent with his own finding of the business being financed, if only partly, by borrowed capital - It is only the net income so arrived at that would stand to be assessed as 'business income' – Decided partly in favour of Assessee.
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