9911796707
TMI Blog2014 (1) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in allowing the assessee's appeal instead of confirming the Assessing Officer's order. 3. The learned Commissioner of Income-tax (Appeals) grossly erred in not appreciating that the gains earned from trading in shares and units of the mutual funds had been rightly assessed under the head 'Profits and Gains of Business or Profession'. 4. The learned Commissioner of Income-tax (Appeals) grossly erred in not appreciating that the assessee had carried out the impugned transactions in high volumes, frequency and in an organized manner which would clearly establish that the impugned activity was in the nature of "business" and not "investment" as claimed by the assessee; and, therefore, the profits derived from such transactions were taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19,50,86,380/- 3.1 He noted that the shares available with the assessee have been shown as investments. He further observed that the assessee has been dealing in various numbers of scrips and the frequency of activity of purchasing and selling the shares is regular and recurring. He noted that the assessee has not effected the shares purchased and sale transaction through any portfolio manager, discretionary or non-discretionary. He came to the conclusion that the only business carried on by the assessee during the relevant year has been to deal in shares and securities and effecting transactions at the right time so as to achieve handsome gains. Considering the high volume, frequency, continuity and regularity of the transactions which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, the Hon'ble High Court vide order dated 08-08-2011 in ITA No.703/2011 dismissed the appeal filed by the Revenue by holding as under : "1. In this appeal, the question of law raised by the Revenue is, whether the Income Tax Appellate Tribunal was justified in holding that the income earned from sale and purchase of shares were liable to be assessed under the head "income from capital gains" and not under the head "income from business". 2. In para-18 of its judgment, the Income Tax Appellate Tribunal has recorded a finding of fact the transaction of sale of shares of Kirloskar Brothers Limited has been undertaken as a part of assessee's overall activities of nursing the investments of promoter family in the Kirloskar group of compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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