- (1.) This Appeal filed under Sec. 260A of the Income Tax Act 1961 (the Act) takes exception to the order dated 30th August 2013 passed by the Income Tax Appellate Tribunal (Tribunal). The impugned order relates to AY 2008 -09.
(2.) Mr. Pardiwalla, learned Sr. Counsel for the Appellant urges only the following question of law for our consideration : - " Whether, on the facts and in the circumstances of the case and in law, was the Tribunal justified in rejecting the submissions of the appellant that it had earned the short term capital gain of Rs. 77,85,745/ - by considering the same as the nature of business income -
(3.) The Appellant -Assessee is engaged in the business of trading of shares and providing equity share advise. During AY 2008 -09, the Appellant filed its return of income declaring profit in trading of shares at Rs. 7.75 lakhs and short term capital gain at Rs. 77.85 lakhs. This distinction between capital gains on account of investment and gains on trading account in respect of shares in same companies was made on the basis that wherever the holding of shares was in excess of one day, it fell for classification as capital gains on account of investment. The Assessing Officer, in his order dated 15th November 2010 held that the amount shown as short term capital gains on shares is in fact profit earned in the business trading activity in shares carried out by the Appellant. Therefore, the Appellant -Assessee brought the amount of Rs. 77,85 lakhs to tax as income from business or profession.;