2013 (12) TMI 646

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..... sition that entries in the books of account alone are not conclusive in determining the nature of income – Decided in favour of Revenue.
Shri I. P. Bansal, JM And Shri N. K. Billaiya, AM,JJ. For the Appellant : Shri Chaturbhuj Das For the Respondent : Shri Shailesh M. Joshi ORDER Per N. K. Billaiya, AM:- This appeal by the Revenue is directed against the order of the Ld. CIT(A)-32, Mumbai dt.6.11.2009 pertaining to A.Y. 2006-07. 2. The sum and substance of the grievance raised by the Revenue is that the Ld. CIT(A) erred in treating the assessee both as investor as well as trader holding that profit/loss on sale of shares held for less than 30 days to be assessed as business income/loss and treating the profit/loss on sale of share .....

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..... siness income. 4. The assessee carried the matter before the Ld. CIT(A) and reiterated its stand that it has earned income in the form of STCG as investor in shares. It was explained before the Ld. CIT(A) that the assessee is only buying and taking delivery of shares, so also selling and giving delivery of shares, simultaneously holding the same for a certain minimum period, which has sometimes extended upto couple of years. It was pointed out by the assessee that it has always valued his holding in shares at cost only and had never shown its investments as stock-in-trade. After considering the facts and the submissions, the Ld. CIT(A) asked the assessee to give a break-up of transaction of STCG on the basis of holding for more than 30 day .....

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..... n, the turnover has substantially decline therefore the facts cannot be said to be identical. The Ld. Counsel for the assessee relied upon the decision of the Hon'ble Jurisdictional High Court in ITA No. 1042 of 2011 in the case of CIT Vs Naishadh V. Vachharajani and pointed out that the Hon'ble High Court following the decision in the case of CIT Vs Gopal Purohit has held that it is open to an assessee to trade in the shares and also to invest in shares and wherever, the shares are held as investment, then the income arising on sale of those shares are liable to be assessed as STCG/LTCG. The Ld. Counsel also relied upon the decision of the Hon'ble Jurisdictional High Court in the case of CIT Vs Gopal Purohit 228 CTR 582 and submitted that .....

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