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TMI Blog2012 (9) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... ear as evident from the copy of computation of income and the assessment order dated 8-12-2009 passed u/s 143(3). Hence, no infirmity found in order of CIT(A) treating the same as short term capital gains on ground that intention of buying of shares was solely for the purpose of investment which is evident from the investment made in the shares during the year 2005-2006, most of the investments in securities was by way of mutual fund which cannot to be traded in the ordinary course, and assessee has earned a huge dividend income - Decided against Revenue. - ITA No.6454/Mum/2010 - - - Dated:- 6-7-2012 - SHRI R.S.SYAL SHRI AMIT SHUKLA, JJ. Appellant by : Mr. M. Murali Respondent by : Mr. Yogesh A. Thar ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh the details of short-term capital gains and from that it was noted by him that the same details were also there in the assessment year 2005-2006, wherein the short term capital gains earned by the assessee had been treated as business income in the hands of the assessee by the Assessing Officer. Following earlier year s assessment order, the Assessing Officer treated the income from short term capital gain of Rs..95,38,765/- as business income. 4. In the first appeal, the assessee placed on record that the company was incorporated with the main object of carrying on the business of plantation, however, due to certain unavoidable reasons, the said object could not be carried out. After re-conversion into a private limited company as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire investment portfolio is around 30 days. 4.2 Before the CIT(A), various arguments were placed in support of the contention by the assessee that it is not for business purpose. The sum and substance of which are that :- (a) Its intention of buying of shares was solely for the purpose of investment which is evident from the investment made in the shares during the year 2005-2006 and also its investment portfolio augmented due to demerger of Femicare Limited Company , which was mainly involved in the investment in shares and securities and no investment was made through interest bearing loan fund. (b) Most of the investments in securities was by way of mutual fund which cannot to be traded in the ordinary course and the same have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009, which has been confirmed by the Hon ble High Court also, he held that the sale of shares of securities is to be taxed as short term capital gains and not business income. Accordingly, he allowed the assesee s appeal. 6. Both the parties made their exhaustive submissions. Learned Senior DR mainly relying upon the finding of the Assessing Officer, submitted that looking to the volume of transactions carried out by the assessee, it cannot be said that it was for the purpose of investment and the period of holding is also not very substantial. Learned AR on behalf of the assessee submitted that the finding of the CIT(A) for the assessment year 2005-2006 has attained finality as the department has not filed any appeal against that order. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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