ITA No. 261/Mum/2017. Case: Mr. Shailendra Nahar Vs ITO 25(2)(3). ITAT (Income Tax Appellate Tribunal)

Case NumberITA No. 261/Mum/2017
CounselFor Appellant: Shri R.S. Khandelwal, Adv. and For Respondents: Miss Bharti Singh, Adv.
JudgesShri B.R. Baskaran (AM)
IssueDirect Tax
Judgement DateWednesday May 03, 2017
CourtITAT (Income Tax Appellate Tribunal)

Order:

  1. The assessee has filed this appeal challenging the order dated 13-10-2016 passed by Ld CIT(A)-44, Mumbai for assessment year 2010-11, wherein he has confirmed the assessment of Short term capital gain arising on sale of shares as business income of the assessee.

  2. The assessee is deriving income from brokerage & commission, rent, dividend, interest and capital gains. During the year under consideration, he declared short term capital gains as well as long term capital gains arising from sale of shares. The assessee has also held certain shares as stock in trade and has declared business income there from. The AO held that the short term capital gains declared by the assessee should be treated as business income of the assessee, since

    (a) The volume and quantity of trade were high.

    (b) holding period of shares was less

    (c) activities are carried on continuously and recurring in nature

    (d) income from share transactions is major livelihood and

    (e) the assessee has spent majority of time in share trading activity...

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