income tax scrutiny

Hi

I have a query regarding scrutiny U/s 143(3) that I have filed return for A.Y-2007-08 showing my shares trading income as capital gain income, now the ITO wants to treat the income as business income,I want to confirm that can I claim business expenses against such business income,as obviously such expenses could not have been claimed against capital gain income at the time of filing of return?

If yes, then is there any procedure to claim it ?

plz reply immediately