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2014 (8) TMI 1149 - AT - Income TaxLoss on account of trading in shares - Speculation loss - Held that:- A perusal of the assessment order clearly shows that the assessee has income from share trading, which is a loss, the assessee has income from other sources under the head “interest income” to the extent of ₹ 2,77,243/- so also under the head “service charge to the extent of ₹ 1,50,000/- , total of which far exceeded the share trading loss. As the assessee’s income from other sources is far exceeding the share trading loss, the said loss on account of the purchases and sales of shares is not hit by the provisions of Explanation to Sect ion 73 of the Act and consequently the same cannot be treated as speculation loss. Losses incurred on the share trading transactions - Held that:- As it is not iced that the assessee is having only share trading business and the assessee is a Company which is dealing in shares of other Companies in view of the decision of the Hon’ble jurisdictional High Court in the case of Arvind Investments Ltd. (1990 (3) TMI 5 - CALCUTTA HIGH COURT), the assessee’s business is liable to be treated as speculation business. In these circumstances, the Assessing Officer is directed to treat the assessee’s business from share trading as speculation business and al low the assessee benefit of set off of speculation income of ₹ 50.28 crores against the speculation loss of ₹ 66.40 crores.
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