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TMI Blog2017 (6) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... turn declaring taxable income at Rs. 33,65,327/-. The assessee has declared short term capital loss of Rs. 50,34,051/- from trading in future & options. Further, he has declared short term capital gain of Rs. 75,02,488/- in respect of share trading and has consequently declared net short term capital gain of Rs. 25,28,437/- on which 10% tax has been paid. The AO asked the assessee to file the details of sales and purchases. The AO noted that the nature of security transaction and the manner in which the same have been done, determines its nature i.e. whether the same are in the nature of business or only an investment activity The AO noted that following principles shall be considered i.e magnitude of purchase and sales and frequency of tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold without delivery. In the first column, it is mentioned that the scrips were held as on 31.03.2007 i.e. preceding assessment year i.e 2007-08 which is opening stock and out of the same, sales have been made in assessment year under appeal. Paper Book page 38 is further details of scrips holding to show sales scrips, purchases in the year under appeal which have been sold in the next year. Ld. counsel for the assessee, therefore, submitted that the findings of the AO are wholly incorrect that the assessee is indulged in day trading and indulged in transactions without delivery. He has submitted that the assessee made investment in shares only, therefore, it was rightly declared as capital gains. He has submitted on the principle of consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rohit (supra), we set aside the findings of the Ld. CIT(A) and direct the AO to treat the Short term Capital Gain as Short term capital gain." 4. On the other hand, Ld. DR relied upon the authorities below and submitted that in earlier years, only source of investment have been examined by the AO. The assessee made sale and purchase of shares with profit motive, therefore, it was adventure in the nature of trade. Ld. DR submitted that there are heavy sales and purchases in the assessment year under appeal. Ld. DR relied upon the order of the Delhi High Court in the case of CIT vs D&M Components Ltd. in ITA No.561/2012 dated 21.04.2014 in which considering the short duration of holding of shares and lack of clarity in the account books, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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