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2010 (11) TMI 450 - AT - Income TaxApplicability of Explanation to Section 73(1) - Determination of speculation loss - it is clear that if in case of a company part of the business consists of dealing in shares the same may be treated as losses in speculation business except for certain companies falling under exceptions - appellant has utilized their funds mainly for the purpose of investment in shares and more than that for the purpose of making loans and advances - Held that: assessee's main source of income and source of application of fund is in loans and advances - It is clear that the loans and advances given by the assessee in its regular business are to the tune of Rs.7.3 crores as against the investment in shares at Rs.5.38 crores - Held that: Assessing Officer has not disputed the fact that the interest income earned from granting of loans and advances is not the business income, rather he has assessed the same as business income - It has to be considered as normal business loss and deducted in the computation of the "profits and gains of business - Appeal is dismissed
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