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5.4, The appellant submitted that he has entered into intraday transaction of shares and on the same day there was a corresponding purchase of the share which AO has not considered and instead of profit, the entire sale price was added and filed supporting document. The AO was requested to attend the proceeding and submit comments over the contention of the appellant. Accordingfy the AO; attended the appellate proceedings and issue was discussed as per the order sheet entry on 15.05.2019 as under-

ITA no.1254/AHD/2019 A.Y. 2011-12 5.5 In view of the above facts, the AO accepted the contention of the appellant that only profit out of the intraday transaction should be added. Accordingly, the addition made by the AO is restricted to Rs.3,26,400/- and balance is deleted.

Thus the ground of appeal is partly allowed.

11.1 Before parting, it is also equally important to note that in intraday trading settlement transaction is done without actual delivery of securities therefore the income from the intraday activities can only be in the form of speculative in nature as defined under the provision of section 43(5) of the Act which reads as under:

43. In sections 28 to 41 and in this section, unless the context otherwise requires--

(5) "speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips:

11.2 Therefore the income arises on intraday trading of scrip of M/s Chandni Textile Engineering Industries Ltd is taxable as income under the head business as speculative income. To our understanding, there is no possibility of calculating the income from intraday transactions under the head capital gain. In view of the above discussion we hold that the assessee has already offered the income from the sale of shares of M/s Chandni Textile Engineering Industries Ltd in profit & loss account.