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2016 (3) TMI 631 - AT - Income TaxShare trading loss treated as speculation loss - application of provisions of Explanation to Section 73 - Held that:- When the principal business is that of granting loans and advances and if such company also engages itself in purchase and sale of shares, then the purchase and sale of shares activity would fall under the exception to Explanation to Section 73 of the Act. We have already held that one of the main objects of the assessee company is lending activity and more so the assessee is a NBFC registered with RBI having valid certificate of registration and the fund deployed in lending activity is much more than the fund deployed in share trading activity on a consistent basis over a period of time. Hence the principal business of assessee company is that of granting loans and advances and thereby outside the ambit of Explanation to Section 73 of the Act. Accordingly, the share trading loss claimed by the assessee cannot be construed as speculation loss and accordingly we find no infirmity in the order of the Learned CIT(A) in this regard. - Decided against revenue
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