TMI Blog2014 (6) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... where actual delivery was not intended to be taken or given - the entire transaction carried out by the assessee was within the umbrella of speculative transaction - There was no bar in setting off the loss arising out of derivatives from the income arising out of buying and selling of shares – Decided against Revenue. - GA No. 3481 of 2013, ITAT No. 215 of 2013 - - - Dated:- 12-3-2014 - Girish Chandra Gupta And Sudip Ahluwalia,JJ. For the Appellant : Mr. P. K. Bhowmick, Advocate For the Respondent : Mr. J. P. Khaitan, Senior Advocate with Ms. A. Banerjee, Mr. R.L. Mitra and Ms. P. Dhar, Advocates. ORDER The Court : The appeal is directed against a judgment and order dated 19th June, 2013 by which the learned Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss through future price fluctuations in respect of the contracts for actual delivery of goods manufactured by him or merchandise sold by him; or (b) a contract in respect of stocks and shares entered into by a dealer or investor therein to guard against loss in his holdings of stocks and shares through price fluctuations; or (c) a contract entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard against loss which may arise in the ordinary course of his business as such member; [or] (d) an eligible transaction in respect of trading in derivatives referred to in clause [(ac)] of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings and transactions in actual buying and selling of shares. An answer to this question is to be found in the explanation appended to Section 73 which reads as follows: Explanation : Where any part of the business of a company ([other than a company whose gross total income consists mainly of income which is chargeable under the heads Interest on securities , Income from house property , Capital gains and Income from other sources ], or a company the principal business of which is the business of banking or the granting of loans and advances) consists in the purchase and sale of shares of other companies, such company shall, for the purposes of this section, be deemed to be carrying on a speculation business to the extent to which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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