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2010 (10) TMI 503 - ITAT, MUMBAISpeculation loss - the assessee in the present case is a company which is engaged in the business of trading and investment in shares - The return of income for the year under consideration was filed by it on 30.10.2001 declaring a loss of Rs. 14,22,97,586 under the head PGBP - AO held that Explanation to section 73 is a deeming provision whereby even though the business activity of trading of shares involved taking delivery of shares, the business was deemed to be a speculation business - Ground No. 1 of the assessee’s appeal is accordingly dismissed According to the A.O., the loans and advances given by the assessee company for non-business purpose, interest paid on such borrowed funds to the extent utilized for non-business purpose was liable to be disallowed - Ground No. 2 of the assessee’s appeal is accordingly treated as allowed Ground No. 3 relating to disallowance of assessee’s claim for loss of Rs. 5,30,013 on account of shortage of shares has not been pressed by the ld. Counsel for the assessee at the time of hearing before us - Appeal of the assessee is partly allowed
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