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2013 (4) TMI 345 - AT - Income TaxSet off dividend income against the speculation loss - AO contested against the directions of CIT for directing to set off ignoring the fact that speculation loss cannot be set off with any income other than speculation income &only the balance amount is to be considered to be speculation loss to be carried forward and to be set off only against the share business profit in subsequent years - Held that:- It is not denied that the shares are held by the assessee as stock in trade and the assessee earned dividend income on the shares as stock in trade. The finding of CIT(A) that the assessee is engaged in speculation business and the loss incurred by the assessee on the purchase and sale of shares by applying Explanation (b) to section 73 and the Revenue has not come in appeal against this finding. The dividend income earned by the assessee on stock in trade of such speculation business formed integral part of such deemed speculation business and was eligible to be set off against its so called speculation loss. In this regard, it is held that the dividend income is to be set off against the speculation loss and only the balance amount is to be considered to be speculation loss to be carried forward to be set off only against the speculation profit in subsequent years. Respectfully following the said decision of the Tribunal no infirmity in the order of the CIT(A) is found - against revenue.
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