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TMI Blog2013 (4) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee on the purchase and sale of shares by applying Explanation (b) to section 73 and the Revenue has not come in appeal against this finding. The dividend income earned by the assessee on stock in trade of such speculation business formed integral part of such deemed speculation business and was eligible to be set off against its so called speculation loss. In this regard, it is held that the dividend income is to be set off against the speculation loss and only the balance amount is to be considered to be speculation loss to be carried forward to be set off only against the speculation profit in subsequent years. Respectfully following the said decision of the Tribunal no infirmity in the order of the CIT(A) is found - a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation to section 73 were held to be applicable to the assessee company. The CIT(A) in its order dated 06.03.00 held that Explanation to section 73 was not applicable since the assessee's principal business was that of granting of loans and advances. In an appeal by the department and Cross objection by the assessee the Tribunal vide its order dated 27.5.2003 in ITA NO.921/Kol/2000 CO.51/C/2000 has restored back to the file of AO to examine the claim of the assessee company that the provisions of Explanation to section 73 ere not ap[plciable inter alia on the ground that the principal business of the assessee company was that of granting of loans and advances. While giving effect to the order of the Tribunal, the AO has once again held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of Hon'ble Madras High Court in the case of CIT vs Ramnath Goenka 259 ITR 26 (Madras) contended that for the purpose of setting off the dividend income since this issue of purchase and sale of shares as stock-in-trade should also be treated as income arising from the speculation business and the same may be set off against the deemed speculation loss. 5. The ld. DR relied on the order of the AO. 6. We have heard the rival submissions and carefully considered the same. It is not denied that the shares are held by the assessee as stock in trade and the assessee earned dividend income on the shares as stock in trade amounting to Rs.15,87,110/-. The finding of the ld. CIT(A) that the assessee is engaged in speculation business and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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