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2015 (7) TMI 1224 - HC - Income TaxLoss suffered on account of share trading as share broker - whether not a business loss or speculative loss as per Explanation to Section 73 and as per Explanation 2 to Section 28 and set off against the income from the business of brokerage was not allowed - Held that:- come Tax Appellate Tribunal, after going through the relevant provisions of Sections 43(5)(d) and 73(1) and Explanation to Section 73 of the Act and after examining as to why Explanation to Section 73 was inserted by the Act with effect from 1.4.1997, i.e., in order to have effective check on the dealings in shares of the company controlled by business houses controlling groups of companies as tax avoidance device correctly answered the same in favour of the assessee. The loss suffered by the assessee on account of misdeals or purchase and sale of shares by actual delivery, or trading in derivatives in a recognised stock exchange cannot be considered to be loss on account of speculation. Conversely it has to be treated as the business loss of the assessee. More over it is pertinent to mention that misdeals happen involuntary during the course of the assessee's business activities which is beyond the control of the assessee. Purchase and sale of shares is not the business of the assessee. Purchase and sale of shares is not the business of the assessee company because all such purchase and sale of shares are made on behalf of the clients of the assessee company earning brokerage towards the same. - Decided against revenue Deduction claimed for the expenditure incurred towards fixing false ceiling, painting, electrical cabling and certain civil works in the rented premises - Held that:- Tribunal correctly by relying on the decisions of our High court reported in (i)CIT v. Ayesha Hospitals Pvt. Ltd., (2006 (10) TMI 117 - MADRAS High Court) and (ii)Thiru Arooran Sugars Ltd. V. Dy. CIT (2013) [2013 (2) TMI 450 - Madras High Court] held the expenses incurred as revenue expenditure and accordingly allowed deduction on account of the same - Decided against revenue
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