Frequent large amount transactions in shares without separate books of accounts will lead to business income instead of STCG

Advertisement The assessee is engaged in business of auto spare pails and investment in bonds, mutual funds and other securities. The assessee filed his return declaring STCG on the basis that the shares were purchased with an intention of investment. But the Ld. AO rejected the assesse’s claim making profit from sale of shares taxable under the provisions of business income. On further appeal to Ld. CIT (A), the same was upheld stating that assessee failed to maintained separate books of accounts for the investment and the sale purchase took place in very short time period. Whenever any ...