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TMI Blog2023 (9) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... them off within a short span of time will not justify the gain to be treated as business income while the same was shown in the investment portfolio in the books of the assessee. In our opinion, the decision of both the authorities below is not sustainable as this being a factual issue and the assessee has maintained the books clearly maintaining the dichotomy in the purchase of securities in the books of accounts. The case of the assessee finds support from the decision of HK Financers Pvt. Ltd. [ 2015 (5) TMI 828 - CALCUTTA HIGH COURT] and Purvanchal Leasing Ltd. [ 2022 (2) TMI 437 - CALCUTTA HIGH COURT] - Thus we direct Ld. AO to treat it as short term capital gain. Appeal filed by the assessee is allowed. - Sri Rajesh Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 4. The assessee replied to the show cause notice by submitting that the assessee is maintaining two portfolios; one is investment portfolio and the second is trading portfolio and accordingly showing the earning the income from investment portfolio as well as trading portfolio in the return of income. The assessee submitted that full and complete books of accounts were being maintained showing all these transactions and it is the assessee s decision to treat a particular purchase of shares as investment or under trading account and accordingly, the profit earned from these portfolios have been dealt with. The reply of the assessee did not find favour and Ld. AO treated the short term capital gain of Rs. 20,66,939/- as business income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the case. The Assessing Officer has given detailed reasoning for holding that the transactions were in the nature of business activity. The appellant has claimed that the Assessing Officer has made an artificial classification in respect of shares held for 60 days. On the other hand, the frequency of the transactions clearly show that the appellant did not intend to hold these shares as investment, but to earn profit by way of purchase and sale. Hence, how the valuation has been done and how these shares are shown in the Audit Report is immaterial. The action of the Assessing Officer is scientific and supported by proper logic and detailed analysis. The action by the Assessing Officer in holding these transactions as business act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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