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TMI Blog2015 (9) TMI 1559X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. Our view is fortified by the decision of the Hon’ble Bomby High Court in the case of Gopal Purohit (2010 (1) TMI 7 - BOMBAY HIGH COURT ). We also find that the findings of the Ld. CIT(A) is heavily based on the fact that the assessee is indulged in intra-day trading of shares. We find that the assessee has shown the same as business income. Therefore, there is no merit in the findings of Ld. CIT(A). Respectfully following the above , 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. - Decided in favour of assessee. - I.T.A. No. 1249/Mum/2012 - - - Dated:- 9-9-2015 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND RAM LAL NEGI, JUDICIAL MEMBER Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares. The AO was of the firm belief that the assessee is actively engaged in the business of share trading and share speculation and accordingly treated ₹ 24,86,318/- as business income of the assessee. 4. The assessee carried the matter before the Ld. CIT(A) and reiterated what has been stated during the course of the assessment proceedings but the Ld. CIT(A) did not accept the claim of the assessee and confirmed the assessment order. The entire decision of the Ld. CIT(A) is based on the fact that the assessee is heavily engaged in intra-day trading in shares. 5. Aggrieved by this, the assessee is before us. 6. The Ld. Counsel for the assessee once again stated that the investments have been made out of own funds and the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CBDT has also mentioned in its circular that it is possible for a tax payer to have two portfolios i.e. an investment portfolio and trading portfolio. This view has also been fortified by the decision of the Hon ble Jurisdictional High Court in the case of CIT Vs Gopal Purohit 336 ITR 287(2010) 188 Taxman 140 (Bom). 9. The allegation of the AO is that the assessee has indulged in high frequency transactions. This in itself could not mean that trading activities have been carried out. A prudent investor always keep a watch on the volatility of the market and made sound investment decision in accordance with such market fluctuation and has the liberty to liquidate the investments in shares as and when necessary. The law itself has reco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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