E-Cap Partners, Mumbai vs Department Of Income Tax
13. The aforesaid decision was affirmed by the Hon'ble Madhya Pradesh High Court
reported in (2012) 19 ITJ 326 M.P. The Mumbai Bench of the Tribunal in the case of
Shantilal M Jain vs ACIT vide order dated 27-04-2011 (ITA No. 269/Mum/2010) held
that despite large volume of shares transactions, the Assessing Officer cannot ignore the
rule of consistency to treat the gains on sale of shares as STCG. In that case, the assessee
was engaged in the business of trading of investment in shares and securities offered Rs.
1.54 crores as short term capital gain and Rs. 2.91 crores from long term capital gain. The
long term capital gain was accepted whereas short term capital gain was held to be
business profit.