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2016 (6) TMI 1123 - HC - Income TaxTreatment to business loss suffered as speculation loss - application of provisions of Explanation to Section 73 of the Act - Held that:- Taking into account the facts on record and the question which have been posed for consideration of this Court as to whether the business loss suffered by the appellant is to be treated as speculation loss by applying the provisions of Explanation to Section 73 of the Act and will govern under Section 73 or Section 43 (5) of the Income Tax Act, this Court has considered the various decisions of different High Courts cited by the learned Counsel for the revenue. In this regard, the decision in case of R.P.G. Industries Ltd. (2011 (3) TMI 656 - CALCUTTA HIGH COURT ) is relevant and has rightly been relied upon by the learned Counsel for the revenue. This Court is of the opinion that the explanation to Section 73 will have a bearing on the issue since the company is dealing with the purchase and sale of the shares and even considering the loss on different valuation of the shares, it will govern under the definition of the speculation loss, as also the assessee is doing the trading of the shares, which has been rightly held by the A.O. and confirmed by the Tribunal and it cannot get settle as business income with the other trading. Thus, this Court is in agreement with the view taken in the case of R.P.G Industries Ltd., (supra) that the loss suffered by a company in share transactions is to be treated as a speculative loss within the meaning of Section 73 of the Act. On consideration of the entire materials on record including the decision cited, as well as, order passed by the AO and the Tribunal, we hold that the learned Tribunal took the correct view of the law and we accordingly answer the question formulated in this appeal in favour of the Department and against the assessee.
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