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TMI Blog2014 (9) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... nue. - Income Tax Appeal No. - 149 of 2014 - - - Dated:- 25-8-2014 - Hon'ble Dr. Dhananjaya Yeshwant Chandrachud, CJ And Hon'ble Dilip Gupta,JJ. For the Appellant : Dhananjay Awasthi, Sc ORDER The appeal by the revenue arises from a decision of the Income Tax Appellate Tribunal dated 7 January 2014. The assessment year to which the appeal relates is A.Y. 2005-06. The following questions of law have been framed in support of the appeal : A. Whether the ITAT erred in law in ignoring circular no.4 of 2007 dated 15.6.2007 where distinction has been drawn between shares held as stock-in-trade and shares held as investment. B. Whether the ITAT erred in law in ignoring the fact that frequent share trading of high va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oker is also satisfactory. In fact, in later years, the assessee has got a Demat Account in her name in the vicinity of the broker's office, for operational convenience; (iv) Such investment in shares and consequent long term/short term capital gain or loss have been accepted in earlier years; (v) The assessee has always shown the stock of shares as investment and not stock-in-trade; (vi) In case of many shares; just because shares have been sold before completion of a year; cannot be taken as a basis to penalize the assessee with the view that it was a business transaction; when the assessee is duly showing it as short term capital gain; (vii) Long term capital gain/loss has been accepted on similar purchase and sale; (v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (capital asset) and shares which are held as stock-in-trade (trading asset) : In the case of Commissioner of Income-tax (Central), Calcutta v. Associated Industrial Development Co. (P.) Ltd. [1971] 82 ITR 586, the Supreme Court observed that: Whether a particular holding of shares is by way of investment or forms part of the stock-in-trade is a matter which is withing 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 as to whether it has maintained any distinction between those shares which are its stock-in-trade and those which are held by way of investment. In the case of Commissioner of Income-tax, Bombay v. H. Holck Larsen [1986] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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