9911796707
TMI Blog2014 (8) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... the said loss on account of the purchases and sales of shares is not hit by the provisions of Explanation to Sect ion 73 of the Act and consequently the same cannot be treated as speculation loss. Losses incurred on the share trading transactions - Held that:- As it is not iced that the assessee is having only share trading business and the assessee is a Company which is dealing in shares of other Companies in view of the decision of the Hon’ble jurisdictional High Court in the case of Arvind Investments Ltd. (1990 (3) TMI 5 - CALCUTTA HIGH COURT), the assessee’s business is liable to be treated as speculation business. In these circumstances, the Assessing Officer is directed to treat the assessee’s business from share trading as speculat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had earned interest income of ₹ 2,77,243/- , service charge of ₹ 1,50,000/- and rental income of ₹ 24,000/- . It was the submission that the income from the said three sources far exceeded the share trading loss and consequently the Explanation to Sect ion 73 of the Act was not applicable to the assessee. Ld. A.R. submit ted that the ld. CIT(Appeals) did not accept the contention of the assessee. It was the submission that as the income under the head "income from other sources" was higher than the income on account of share transactions, the Explanation to Sect ion 73 of the Act did not apply in the assessee's case. 4. In reply, ld. CIT, D.R. vehemently supported the order of the Assessing Officer and ld. CIT(Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 66.40 crores in the share trading. It was the submission that the Assessing Officer had treated only this amount of ₹ 66.40 crores as being hi t by the Explanation to Sect ion 73 of the Act . It was the submission that the assessee had also earned income from the share dealing to an extent of ₹ 50.28 crores and when filing the return the assessee had set off the share trading income against the losses incurred on the share trading transactions. It was the submission that the ld. CIT(Appeals) upheld the action of the Assessing Officer in holding that the income from the share trading to the extent of ₹ 50.28 crores was a business income of the assessee and the loss in the share transact ions to the extent of ₹ 66.40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court has held in para 26 that "the business activity which consists of purchase and sale of shares will be treated as speculation business. I f the entire business activity of a Company consists of purchase and sale of shares of other companies, then the entire business will be treated as speculation business. But, if apart from purchase and sale of shares, the company has other business activities, then those other activities will not be treated as speculation business". Thus, as it is not iced that the assessee is having only share trading business and the assessee is a Company which is dealing in shares of other Companies in view of the decision of the Hon'ble jurisdictional High Court in the case of Arvind Investments Ltd. (supra), ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
