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TMI Blog2022 (6) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... . The revenue has raised for the following substantial question of law for consideration: (a) Whether on the facts and circumstances of the case the Learned Income Tax Appellate Tribunal, 'B' Bench Kolkata erred in law in upholding the order of the CIT(Appeals) - VIII, Kolkata in holding that the Assessee Company's loss from purchase and sale of share to the tune of Rs.5,10,28,564/- was not covered by the Explanation to provisions of section 73 of the Income Tax Act, 1961 and the same is non Speculation Loss? (b) Whether on the facts and circumstances of the case the Learned Income Tax Appellate Tribunal, 'B' Bench Kolkata erred in law in upholding the order of the CIT(Appeals) - VIII, Kolkata in holding that the deployment of funds in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue arising out of the first two questions relate to, whether the assessee's loss from purchase and sale of shares to the tune of Rs.5,10,28,564/- was or was not covered by the Explanation in Section 73 of the Income Tax Act, 1961? In the assessment order, it was held, inter ali8a, that : "The character of loss suffered by the assessee from its share trading and the provisions contained in Explanation below section 73 were specifically discussed with the A/R. From the details submitted by the A/R, it has emerged that the assessee has no income under the heads 'interest on securities', 'income from other sources' and 'income from house property' respectively, though it has incurred a loss of Rs.54,83,881/- chargeable under head 'capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the appellant when computed in accordance with the Hon'ble Special Bench decision I the case of Concord Commercials (P) Ltd. (supra) it will consist mainly of income chargeable under the head "Interest on securities". "Income from house property", "Capital gains" and "Income from other sources" hence the explanation to Section 73 will not be applicable to the case of the appellant and accordingly the loss on trading of share cannot be termed as speculation loss". The Tribunal confirmed such finding of the CIT (Appeals) made on facts. In the circumstances, we find no substantial question of law arises on the said two questions. In so far as the third question is concerned, hearing is necessary. Learned Central Government Advocat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only Rule 8D(2)(i) is applicable and not 8D(2)(iii). Clause (ii), which clearly provides that formula giving therein is to be evoked only in a case where assessee has incurred expenditure by way of interest during the previous year which is not directly attributable to any particular income or receipt. In this case Interest payment is only Rs 4,801/-. This interest is attributable to loans not utilised for investment but for giving loans to Shakti Sugar Ltd. i.e. Rs 3,00,000/- and Rs 7,00,000/- paid as security deposit to SKP Securities. Rs 37,00,000/- taken from Parkview Properties Pvt. Ltd. and Rs 3 lacs and Rs 7 lacs from Bikanna Commercial Pvt. Ltd. and Shahjahanpur Electric Co. Ltd. respectively. In view of the above facts, we have no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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