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2017 (8) TMI 1450 - AT - Income TaxSpeculation loss - loss from the share transactions - explanation to section 73 - whether the income of the assessee under the head income from other sources is higher than the income under the head business income or not. The assessee claims that the income under the head other sources is higher than the income under the head business income and accordingly they do not fall within the purview of the explanation to section 73. Held that:- assessee has been showing its income from share trading in all the years beginning from financial years 2005-06 to 2009-10. However, the income from consultancy for ₹7.20 lakh was shown only in the year under consideration. Similarly, the interest income has not been shown every year by the assessee. In view of the above, it can be concluded that principal business of the assessee is of share trading and granting of loan and therefore it is outside the purview of provision of Explanation to Section 73 of the Act. Now, it is well settled that the amendment under the Explanation to Section 73 of the Act for treating the principal business of share trading under exception category with retrospective effect in nature. The principal business of the assessee is of share trading. Therefore, the impugned loss cannot be treated as speculative by virtue of the provision of Explanation to Section 73 of the Act. - Decided in favor of assessee.
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