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2018 (7) TMI 876 - HC - Income TaxLoss in the share transactions as not a speculative loss - assessee as an investment company - Held that:- On perusal of the assessment order, working evidences that the loss on trading in shares at ₹ 2.74 crores has been taken into account to arrive at income from business. Thus, the basic premises on the part of the Revenue that the respondent assessee's income mainly consisted of income from business is factually incorrect. Once it is found as a fact in the order dated 17th September, 1998 of the Tribunal that the assessee's income mainly consisted of income from other sources as it forms 91.68% of its total income, then in the absence of any challenge to the finding of fact, it cannot be a subject of inquiry. Once the finding of fact has not been challenged, it must follow that Section 73 of the Act which introduces a deeming fiction to define a speculation business will not apply as the bracketed portion in the Explanation carves out an exception so far as main income is from “Income from other sources”. Thus, in our view, the question has proposed for our consideration stands concluded by the decision of this Court in Darshan Securities Pvt. Ltd. [2012 (2) TMI 117 - BOMBAY HIGH COURT] As in the present fact, the respondent is an Investment Company. Therefore, the question of law referred to us for our opinion is answered in the affirmative i.e. in favour of the respondent assessee and against the appellant Revenue.
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