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2017 (2) TMI 723 - AT - Income TaxDenial of claim of set off of loss from shares and derivatives - whether loss from the purchase and sale of shares can be set of against the business income in terms of section 73? - Held that:- Loss incurred on derivative transaction was not a speculative loss and is allowed to be adjusted against business income. See Asian Financial Services Ltd. Vs. Commissioner of Income Tax-3, Kolkata [2016 (3) TMI 685 - CALCUTTA HIGH COURT ] Whether the loss from the activity of trading in shares, i.e., purchase and sale of shares is a speculation loss in terms of explanation to section 73(4) ? - Held that:- Respectfully following the decision of the Tribunal in the case of SRJ Securities Ltd. (2003 (1) TMI 260 - ITAT DELHI-B ), we hold that the activity of purchase and sale of shares carried out with assessee for the purpose of section 73 of the Act is a speculation business activity and, accordingly, the loss of ₹ 10,10,75,192/- suffered from the activity of purchase and sale of shares cannot be allowed to set off against the business income.
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