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TMI Blog1991 (9) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that it was a loss which was required to be taken into account while computing her income from business and other sources. The Income-tax authorities, however, held that the contracts of purchase and sale of the shares were settled down by the assessee and M/s. J.K. Investment Co. otherwise than by actual delivery of the shares and, therefore, the resultant loss was nothing but speculation loss. The aggrieved assessee is now before us in this second appeal. 2. Shri S.R. Surana, CA vehemently urged that the loss under consideration was a loss which resulted from the transactions of purchase and sale of shares and was, therefore, allowable as a business loss. 3. However, on going through the material placed before us, including letters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever obtained the delivery of the goods i.e., shares purchased. In fact, the claimed 1000 Equity Shares of Kalyani Steels Ltd. never left the custody of their unknown owners and travailed to the custody of the assessee. From the very beginning the parties had entered into speculative transaction and had not intended to give and take delivery of the goods claimed to have been purchased and sold. The contract was, as is quite evident from letter dated 25-11-84, settled down between the parties otherwise than by actual delivery of the shares. Without doubt it was a speculative transaction and the resultant loss was nothing but loss suffered in speculative transaction. In this behalf we get good support from cases in Davenport Co. (P.) Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... speculative transactions may be suffered by a person dealing in speculative transactions or, to say more correctly, doing speculation business and/or a person indulging in an activity of adventure in the nature of trade. In any case it would be a speculation loss to be dealt with in accordance with the provisions of section 73. In the end Mr. Kundra submitted that in the face of assessee's attempt to take the case to section 74 revenue's stand would be that the loss in question is quite bogus, sham and should not be allowed to reduce assessee's tax liability in any way. 6. During the course of hearing we had informed the parties that if the assessee wanted to raise a new point we would consider the same according to law provided that suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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