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TMI Blog2016 (7) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... to three months of the year ending. The assessee had not held any stock for more than six months. According to the Assessing Officer, he therefore concluded that the assessee had made purchase and sale of shares with the motive to earn profit and the activity was, therefore, in the nature of adventure in trade and not by way of investment. We are not required to judge the validity of the Assessing Officer's prima facie conclusion that the petitioner was trading in shares and not investing to earn dividend. We only find that, in absence of failure on part of the petitioner-assessee to disclose truly and fully all materials facts, reopening of assessment, which was previously framed after scrutiny, could not have been done. Only on this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the same is to be assessed as an income from income from business , depends on the volume and frequency of transactions. When there are huge number of transactions, the income has to be treated as an 'income from business' and taxed accordingly. CBDT has also issued a guideline in the regard vide Circular No. 4 of 2007 dated 16.06.2007 providing the circumstances where the share trading income has to be regarded as business income. The assessee had filed return for A.Y. 2008-09 on 06.10.2008 returning income from share trading of ₹ 48,49,030/- (Short terms Capital Gain) which was assessed u/s. 143(3) of the Act accepting the returned income. Tax was levied at special rate of 10%. From the assessment records, it is notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2016. 3. The petitioner filed objection under a communication dated 02.02.2016 to the notice for reopening. Such objections were, however, rejected by impugned order dated 15.03.2015. 4. Having heard learned counsel for the parties and having perused the documents on record, it emerges that the notice for reopening was issued beyond a period of four years from the end of the relevant assessment year. The additional condition of the income escaping assessment for the reason of the failure on part of the assessee to disclose truly and fully all material facts, therefore, had to be satisfied. In this context, if we peruse the reasons recorded by the Assessing Officer there is no averment of any failure on part of the assessee to discl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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