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2016 (12) TMI 1482 - AT - Income TaxTreating the trading loss as a speculation loss - Held that:- If the transactions of the assessee are considered in the light of the definition of speculation transaction given hereinabove, in our considered opinion, the transactions of the assessee cannot be considered to be speculative transactions. The assessee has purchased and sold the shares during the day itself which may, at the most, be considered as trading in shares. Any loss arising out of this cannot be considered as a speculation loss. We, therefore, do not find any error in setting off of loss with the profits by the assessee. The revenue authorities have grossly erred in treating the trading loss as a speculation loss. Without prejudice to our aforementioned findings and for the sake of the completeness of adjudication on the facts in hand, provisions of Section 73 as mentioned hereinabove do not apply at all. Since the assessee has not set off the alleged speculation loss from the business profit but in fact has set off business loss from the alleged speculation profit. The transactions of the assessee do not fit into the definition of speculation transaction given u/s. 43(5) of the Act (supra). We find the order of the First Appellate Authority erroneous and are accordingly set aside. The A.O. is directed to allow the set off of losses as claimed by the assessee. - Decided in favour of assessee
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