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2012 (6) TMI 38 - HC - Income TaxDeeming provision of carrying speculation business under Explanation to Section 73 - set off of loss incurred by assessee on purchase and sale of shares denied from other income on ground that said loss is speculation loss and assessee is not covered under exclusionary clause of Explanation to Section 73 - Revenue contended that principal business of the company is not granting loans and advances as the same is not specified in Memorandum of association - Held that:- The words "carried on" stated in Section 73 mean actual carrying of the activity and it has to be read in context of what actually was done by the company in the relevant year, rather than what was main object in the Memorandum of Association of the company. Further, Assessment order refers to only interest income and does not refer to any other income, hence assessee mainly earned income from interest from granting loans and advances. Therefore, assessee was clearly covered by the exclusionary clause of Explanation to Section 73 and the Tribunal rightly set off the losses from sale and purchase from the income of the assessee from loans and advances - Decided in favor of assessee.
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