Large volume trading of shares does not per se mean activity is business

Posted: 26 Nov 2010 10:38 PM PST

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 assessable 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 department to the Tribunal, HELD dismissing the appeal: (i) It is no more res integra that a person...

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