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TMI Blog2017 (1) TMI 1752X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee and such loss represents normal business exigencies. Such type of business exigencies cannot be assumed to be speculative activity so much to attract explanation to section 73. Expenses incurred by the appellant relate to its normal broking activity - HELD THAT:- Since it is held that there no speculation activity carried on by the assessee consequently; there is no justification in disallowing the same expenditure assuming speculation activity. Besides assessee has demonstrated that expenditure disallowed represent institutional fees and other incidental expenses, which has not be factually disallowed by the authorities below. In view thereof, both the disallowances are deleted and the assessee s grounds are allowed. - ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the norms and to save its reputation the assessee had to settle and bear the losses due to the operational errors and bad deliveries. Such exigencies are faced by the assessee in normal course of its business. The assessee gave evidence in this behalf which has been rejected merely on the observation that they are handwritten. Besides, the learned AO further disallowed expenses of ₹ 7,28,560/-on the assumption that the assessee was in above deemed speculative share trading and these expenditure were related to speculation activity. The assessee gave complete details along with evidence in this behalf, which are admittedly mentioned in the written submissions filed before the CIT(A), as under : b) Trading expenses ₹ 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. 143(3). 5. I have heard both the parties and have perused the material available on record. Looking at the turnover and assessee s commission income, operational default by assessee s huge staff cannot be held as unreasonable. The assessee s total income is a loss and not a positive figure. The accounts are duly audited and follow the established rules and norms. The loss caused by operational default of the employees cannot be treated as loss on account of speculation activity of the assessee and such loss represents normal business exigencies. Such type of business exigencies cannot be assumed to be speculative activity so much to attract explanation to section 73. 6. Apropos ground no.2, since it is held that there no speculati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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