2007 (10) TMI 295

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..... ounts, it could not be said to determine that those shares were held on the investment account, whereas, in fact, the close perusal of the paper book showed who the assessee had purchased and sold shares - . In the absence of any material to show that the assessee has changed his business, that they are not dealing with shares, and that the shares were kept exclusively for the investment purpose, we are not able to take a different view than the one taken by the authorities below concurrently – Taxable as business income
K. RAVIRAJA PANDIAN and CHITRA VENKATARAMAN JJ. C. V. Rajan for Subbaraya Iyer for the appellant. J. Narayanasamy for the respondent. JUDGMENT The judgment of the Court was delivered by K.RAVIRAJA PANDIAN J. - The a .....

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..... allowance of the loss on sale of right entitlement of shares amongst them. 3. The order has been carried on by way of appeal to the Commissioner of Income Tax (Appeals), who, by following the order of the Tribunal in the assessee's own case in the earlier year 1992-93 vide dated 30.12.1996, held that where the Tribunal has after taking into consideration the facts that the shares were purchased with a view to sell them at a profit and in fact those shares were sold within the same accounting year, the conduct of the assessee was not to hold them as investment and earn some interest income but to trade in shares. That was clear from the frequency and nature of transactions in shares. Merely because the assessee had shown those shares as inv .....

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..... n would constitute trading in investment. 5. We heard the arguments of the learned counsel and perused the material available on record. 6. As stated in the summation of facts, in respect of the assessment year 1992-93, the issue has become final to the effect that the income earned by the assessee company on the sale of shares has been regarded as a business income, having regard to the shares held by the assessee and further having regard to the nature of business conducted by the assessee. 7. In the absence of any material to show that the assessee has changed his business, that they are not dealing with shares, and that the shares were kept exclusively for the investment purpose, we are not able to take a different view than the one .....

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