Large volume of purchase and sale of shares can not be the sole criteria to treat the same as business activity

Court: INCOME TAX APPELLATE TRIBUNAL Citation: Dy. Commissioner of Income Tax- 4(2) Vs M/s. SMK Shares & Stock Brooking Pvt. Ltd. ITA No. 799/Mum./2009, (Assessment Year : 2005- 06) Brief :The assessee, a broker in the BSE, disclosed short-term capital gains and long-term capital gains on sale of shares. The AO accepted the LTCG as such though he held that the STCG was asses sable as “business profits” on the ground that the assessee was a stock broker & there was large volume and frequency (more than 300) transactions. On appeal, the CIT (A) reversed the AO. On appeal by the depar...