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TMI Blog2019 (6) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 29,022/- only. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to restrict the disallowance of expenses relating to share trading in own shares at ₹ 29,022/- in place of ₹ 48,37,013/-.Finally we ,respectfully following the apex court decision in the case of Sun Tax Investment Ltd. vs. PCIT [ 2019 (5) TMI 1165 - SUPREME COURT] reverse the order of CIT(A) and restore the order of AO with the modification that expenses to be disallowed relating to the speculative business be restricted to ₹ 29,022/-. - Appeal of the Revenue is partly allowed - ITA No.4218/M/2017 - - - Dated:- 26-6-2019 - Shri Rajesh Kumar, Accountant Member And Shri Ram Lal Negi, Judicial Member For the Assessee : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t but it merely executes the transactions on behalf of its clients. As a share broker the assessee is not responsible for any profit earned or loss incurred out of the transactions in purchase/sales on behalf of the clients but only received brokerage income from the clients on whose behalf the transactions were executed. Whereas, on the other hand as trader the role of the assessee is distinct from that of share broker. Thus assessee is engaged in the business of share trading wherein the entire sales and purchases were done on its own behalf and whatever profit/losses occurs or incurred would belong to the assessee as share trader. According to the AO the assessee is covered by the explanation to section 73 of the Act and does not fall wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as ₹ 390,14,24,958/- as against the actual total turnover of ₹ 39,01,42,49,580/-. The Ld. A.R. filed a necessary documents to corroborate his arguments and thus prayed before the Bench that to this extent the AO be directed to calculate the disallowance of expenses relating to speculative business on the basis of correct figure of turnover. The Ld. A.R. also mentioned that as per the correct turnover the disallowance worked out to ₹ 29,022/-. 6. The Ld. D.R., on the other hand, relied on the grounds of appeal and order of AO. 7. After hearing both the parties and perusing the material on record, we observe that in this case the assessee is engaged in the business of buying and selling of shares and also as broker. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19,58,96,93,954 19,42,45,55,626 39,01,42,49,580 (While calculating the ratio fo own turnover to total turnover the AO wrongly taken the figure of total turnover at ₹ 390,14,24,958/- instead of 3901,42,49,580/-) and thus the expenses pertaining to speculative business was calculated at ₹ 48,37,013/- out of the total expenses ₹ 4,83,70,130/- Table-C(Correct Working as filed before ld CIT(A) Segment Turnover Ratio Own - Capital Market Segment 41,18,64,698 0.06% Client - Capital Market Segment 38,60,23,84,882 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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