There was an interesting judgement in the case where the assessee claimed profit from short-term investments as short-term capital gains. However, the assessing office thought different.
The judgement said (Excerpt)
Gains from sale of shares whether capital gains or business profits: Short period of holding shows that intention of assessee is to earn profit at earliest possible occasion. Assessee is moving as per stock market trend and selling shares at first available opportunity. This type of activity of sale and purchase is rightly termed, not as investment, but as trading
You can read the full judgement here.
