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TMI Blog2014 (5) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the shares are held for more than 12 months or less than 12 months - the AO has accepted that the assessee as an investor insofar as the long term capital gain is concerned – there was reason as to why the profit should not be taxed under the head “short term capital gain” as returned by the assessee – the order of the CIT(A) is set aside and the AO is directed to tax the gains arising from the share transactions under the head “Short term capital gain” as returned by the assessee – Decided in favour of Assessee. - ITA No.1557/Mum/2012 - - - Dated:- 16-5-2014 - Shri I. P. Bansal And Shri N. K. Billaiya, AM,JJ. For the Appellants : Shri Sunil Talati For the Respondent : Shri Ravi Prakash ORDER Per N. K. Bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and frequency of transactions in shares the assessee has carried out, the AO was of the opinion that the assessee is in the business of trading in shares and all profits on such trading activity was treated as business income of the assessee. The assessee carried the matter before the CIT(A) but without any success. Aggrieved, the assessee is before us. 4. The counsel for the assessee strongly submitted that both the lower authorities have grossly erred in treating the assessee as trader in shares. The counsel argued that the assessee is a chairman and MD of Dinesh Mills Ltd., devoting full time of his services to the company and, therefore, the assessee is left with no time to do trading in shares. The motive behind the purchase of shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it had become a dealer and was no longer an investor in shares the particular holdings which had been cleared and the sales of which had resulted in the profit in question had always been treated by it as an investment. It can hardly be disputed that there was no bar to a dealer investing in shares. But then the matter does not rest purely on the technical question of onus which undoubtedly is initially on the revenue to prove that a particular item of receipt is taxable. Whether a particular holding of shares is by way of investment or forms part of the stock-in-trade is a matter which is within the knowledge of the assessee who holds the shares and it should, in normal circumstances, be in a position to produce evidence from its records ..... X X X X Extracts X X X X X X X X Extracts X X X X
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