ACIT Vs. Naishadh V. Vachharajani (ITAT Mumbai)
C.O. No. 136/Mum/2010.
(In ITA No. 6429/Mum/2009)
Assessment Year: 2006- 07.
O R D E R
Per J. Sudhakar Reddy, A.M. :
This is an appeal filed by the Revenue directed against the order of the CIT(Appeals)-35, Mumbai dated 29-09-2009 on the following ground :
“ On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the A.O. to accept the claim of Short Term Capital Gain and Long Term Capital Gain on profit arriving from purchase & sale of shares instead of business income treated by the A.O. without appreciating the fact that the assessee is dealing in large volume of shares, most of the shares are bought and sold within short period, while some are not sold due to market conditions and their holding with assessee remains beyond few days, it will not change the nature of transactions and the assessee is very well engaged in the business of share trading, which denote that the motive of the assessee is to carry on business in shares to book profit rather than investment in shares.”
2. The assessee is a marine consultant. He also has investment in shares. The assessee also has income from speculative profit and Future Option trading in shares. At para 4.1.2 and 4.1.3 the AO has brought out the following facts:
“4.1.2 In the return of income assessee has shown income under the following heads :
