High frequency & volume in share deals with short holding period is trading activity

CA Saurabh Chokhra Brief of the case: The Hon’ble Bombay HC in the above cited case held that when the assessee’s volume of purchasing and selling shares is quite high with higher frequency of buying and selling with holding 75 days or less then its prima facie indicate that it is engaged in trading of shares unless assessee provide a sound reasoning that why transactions should not be considered as trading activity. Facts of the case: The assessee is engaged in the business of trading of shares. For, AY 2008-09, the assessee  filed its return of income declaring profit in trading o...