2011 (12) TMI 630 - AT - Income Tax

Summary

Issues involved:
The judgment deals with the treatment of income from sale and purchase of shares for the Assessment Year 2006-07.

Details of the Judgment:

Issue 1: Treatment of income from sale and purchase of shares
- The assessee declared Short Term Capital Gain, Long Term Capital Gain, income from share trading business, dividend income, and speculation income.
- The AO concluded that the entire Short Term Capital Gain and Long Term Capital Gain should be treated as business income due to the volume and regularity of transactions.
- The assessee contended that the income was mostly from Long Term Capital Gain and that the Short Term Capital Gain was from shares held for more than 90 days.
- CIT(A) accepted the claim of the assessee as an investor based on the details of share transactions.
- The Tribunal upheld the CIT(A)'s decision, noting that the assessee had held shares for a long time and that the income was mostly from long-term holdings.

Issue 2: Consistency in treatment of income
- The assessee's history of being treated as an investor in previous assessment years was highlighted.
- The Tribunal considered the factual situation of the case and previous decisions where the assessee's claim as an investor was accepted.
- The order of the CIT(A) accepting the claim of the assessee was upheld by the Tribunal based on the facts and circumstances of the case.

In conclusion, the Tribunal dismissed the appeal of the Revenue, upholding the order of the CIT(A) regarding the treatment of income from sale and purchase of shares as capital gain and not business income.