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2015 (12) TMI 349 - AT - Income TaxSet off of loss in purchase and sale of shares against business income - CIT(A) allowed the set off of speculative loss disallowed by the AO u/s 73 (1)- Held that:- We find from the records that the AO has not taken into consideration that the assessee company was a non-banking financial company as per the certificate of registration granted by the Reserve Bank of India. It is also held by Hon'ble Gujarat High Court in the case of Barkha Investment & Trading Company vs. CIT (2005 (4) TMI 21 - GUJARAT High Court) that once the assessee company was registered with the Reserve Bank of India and kept the registration alive as Non-Banking Financial Company, the assessee company was to be considered as a company, the principal business of which was granting of loans and advances and Chapter III-B of RBI Act will have an over riding effect. It is observed that if the assessee company has principal business of granting loans and advances then explanation to Section 73 is not applicable as held in the case of Narain Properties Ltd. vs. ACIT (2013 (4) TMI 189 - ALLAHABAD HIGH COURT ) and ACIT vs. Tanna Electro Mechanics (P) Ltd. (2005 (10) TMI 425 - ITAT MUMBAI ). Thus the AO was not justified in treating the loss in the purchase and sale of shares as speculation loss. Hence, considering the order of the ld. CIT(A) and our deliberations on the issue, we find no reason to interfere in the order of the ld. CIT(A) which is sustained. - Decided against revenue
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