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TMI Blog2016 (12) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... s not justified. Having regard to the volume and frequency of the transactions, no separate books of accounts or demat accounts and other facts and circumstances, we are of the opinion that overall effect of all the factors revealed that the activity of sale and purchase of shares claimed under the head 'short-term capital gain' cannot be sustained and it is held as the activity in the nature o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmal course of business. In doing so, the AO considered the volume of investments, their period of holding, whether the assessee had deployed its own funds and whether separate books of accounts were kept and the manner in which the shares were held either as stockin- trade or as investment assets. The Commissioner of Income Tax (Appeals) [CIT(A)] affirmed the addition but directed that the pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/2006. Similarly, the scrip Karuti Company has also been transacted many times during the year. The quantity of scrip transacted in each transaction is in thousands. The sale volume transacted under the head short-term gain is more than ₹ 12 cores. The assessee has sold total shares quantity of ₹ 3.51 Lacs. All these figures establish existence of the factor of volume, frequency and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the transaction was an adventure in the nature of trade or not and the question depends in each case on total impression and effect of all relevant factors and circumstances proved therein which determine the character of the transaction. 20. In the facts of the case, we find that mere not using interest bearing borrowed funds is not sufficient to conclude that transaction of share s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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