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2019 (5) TMI 1603 - AT - Income TaxSpeculation loss u/s 73 - according to the AO short term capital loss and long term capital loss is a speculation loss - according to the assessee the provisions of section 73 does not apply to the assessee as assessee is falling into the exception - no part of the business of the assessee company consists of purchase and sale of the shares - HELD THAT:- On looking at the computation of total income filed by the assessee before the learned assessing officer it has business income of loss, long-term capital gain exempt u/s 10(38) and exempt dividend income. The long-term capital gain which is exempt under section 10 (38) as well as the exempt dividend income which is also exempt under section 10 (34) of the income tax act does not enter into the computation of the total income but is an exempt income. Therefore the only income which is chargeable is under the business income. Therefore it is apparent that no part of the business of the assessee company consists of purchase and sale of the shares. Merely indulging in purchase and sale of shares for investment is not business activity in sale and purchase of shares of other companies for the purpose of this section. Such is the mandate in case of Standipack P Ltd V CIT [2012 (10) TMI 131 - CALCUTTA, HIGH COURT] . In view of this we reverse the orders of the lower authorities and hold that explanation to section 73 does not apply to the assessee company - Decided in favour of assessee.
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