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2011 (6) TMI 401 - ITAT MUMBAISpeculation loss - application of Explanation to Section 73 - Revenue contended appellant Company as Investment company and not a company engaged in the business of granting of loans and advances and considered the loss incurred in trading of shares as speculation loss - Held that:- Rediscounting charges received by the assessee as well as the amounts collected for delayed payments were held to be in the nature of interest under the Interest Tax Act. Discounting would amount to interest for the time the bill is to run which would in turn mean that rediscounting charges have to be construed as interest only. Therefore, activity of bills rediscounting would amount to granting of loans and advances and, accordingly, Explanation to sec.73 would not be applicable. We set aside the order of the CIT(A) and delete the addition made on account of speculation loss by invoking Explanation to sec.73 - Decided in favor of assessee.
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