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2012 (4) TMI 207 - AT - Income TaxBusiness loss - loss on sale of shares - genuine transaction or shame transaction - held that:- the transactions have been undertaken in the normal course of business and since the client has refused to take delivery of the shares, the resultant loss incurred by the assessee-company for the sale of the said shares, is required to be allowed as deduction from the business income. - Speculation loss as per Explanation to section 73 - A.O. stated that assessee's business income during the year consisted of brokerage, the loss incurred in purchase and sale of the above shares should be as speculation loss - assessee contented that transaction of purchases and sale of shares resulting in loss do not pertain to the assessee but pertains to the clients and as per Section 73 of the Act it is applicable only if the transactions are pertaining to the assessee in whose case the same are intended to be applied - Held that:- the assessee-company is not engaged in the business of carrying out purchase and sale of shares for its own profit or loss. The above fact is evident from the balance sheet of the company - The said loss being duly supported by documentary evidences and being genuine delivery based loss, the same cannot be treated as speculative loss.
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