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2019 (11) TMI 1339 - AT - Income TaxSpeculation loss u/s 73 - loss incurred on purchase and sale of shares in respect of delivery based transactions - matter was referred to Third Member u/s 255(4) - difference of opinion between the ld. Members constituting the Division Bench of ITAT, Kolkata - HELD THAT:- Hon’ble Third Member has concurred with the findings of ld. Accountant Member observing that the Explanation to Section 73 does not differentiate between “delivery based transactions” and “derivative transactions in F & O segment” and the same applies to the entire business of purchase and sale of shares, whether such trading is delivery based or non-delivery based, whether there is profit or loss from such business. In the present case, the assessee-company has treated the entire activity of purchase and sale of shares, which comprised of both the delivery based and non-delivery based trading as one composite business and accordingly claimed set off of the loss incurred in delivery based trading against profit derived from derivative trading - the aggregation of the share trading loss and profit form derivatives transaction should be done before application of Explanation to section 73 of the Act and since there was surplus profit on such aggregation, Explanation to section 73 would not be applicable. - Ld. Third member has agreed with the view of the Accountant Member. Appeal of the assessee is allowed.
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