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TMI Blog2014 (9) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... he AY 2004-05 onwards - The nature and extent of the transactions in the two portfolios have been noticed - Investment portfolios had shares of a few companies and transactions were infrequent. Transactions in the trading portfolio were of thousands of shares in 199 companies – the order of the Tribunal is upheld – Decided against Revenue. - ITA 177/2014 - - - Dated:- 26-8-2014 - Sanjiv Khanna And V. Kameswar Rao,JJ. For the Appellant : Mr. Sanjeev Sabharwal, Sr. Standing Counsel ORDER Sanjiv Khanna, J. (Oral) This appeal by the Revenue in the case of MG Shares Stock Pvt. Ltd., relates to assessment year 2006-07 and impugns order dated 8th August, 2013 passed by Income Tax Appellate Tribunal (Tribunal, for short). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is was the position in the earlier assessment years 2004-05 and 2005-06 also. 6. In addition to the said facts, the Commissioner of Income Tax (Appeals) and Tribunal have specifically gone into the question of magnitude of purchases and sales; frequency of transactions; ratio of sales to purchases as shown in the investment portfolio and stock in trade portfolio, period of holding and even the question whether dividend was earned or not. 7. They have held that there was very limited activity or transactions in the investment portfolio in the assessment years 2004-05, 2005-06 and 2006-07. In the three years, investments had been made in only two, five and eight companies, respectively. Eight companies in which investments were made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... term gains as business income. Business income from trading in shares can result in good profit in one year, but lower or marginal in another year because of the inherent risks involved in the business. The Assessing Officer, in the present case, has accepted that the assessee had maintained two separate portfolios; investment, and stock-in-trade portfolio for the shares. There is no allegation that the shares were transferred from one portfolio to other. The portfolios have been in existence since the assessment year 2004-05 onwards. The nature and extent of the transactions in the two portfolios have been noticed. Investment portfolios had shares of a few companies and transactions were infrequent. Transactions in the trading portfolio w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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