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2013 (7) TMI 119 - HC - Income TaxAllocation of business expenses - amongst the speculation and non-speculation activities - Held that:- Authorities have not applied the provisions of section 73(1) to determine that the appellant was carrying on speculation business - It is only after having held that the appellant dealt with the speculative business, they proceeded to allocate the expenses incurred by the appellant in the ratio of its volume and activities and apportioned the expenses equitably - Administrative and other expenses incurred by the appellant are found to be common for both the speculative and non-speculative businesses, as these expenses related to both the streams, allocation of expenses was not only necessary but inevitable and moreover there had to be some rationale in bifurcating such expenses and when authorities have done it on the basis of profit and volume of the business in the ratio of 2:3 - No error is committed at all by the Tribunal warranting any interference - Decided in favour of Revenue. Case relied upon by the petitioner may not come to the rescue of the appellant in as much as there is no dispute to the fact that the appellant is dealing in the purchase and sale of the shares. It is not being disputed that the business of the appellant is both speculative and non-speculative - Commissioner of Income-Tax vs. Darshan Securities P.Ltd. [2012 (2) TMI 117 - BOMBAY HIGH COURT].
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