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2020 (11) TMI 445 - AT - Income TaxLoss from trading in equity shares - speculation loss - claim of the assessee for setting off the loss from the income earned by the assessee under the head ‘business & profession’ - HELD THAT:- Transaction to be speculative in nature because the purchase and sale of shares are on delivery basis, may be the possession is with the stockbroker. Once it is held that the transactions are not speculative in nature, then the gain arising out of such trading transactions shall be subject to be taxed only under the head ‘income from business’ in the case of the assessee. Since income from business and income from profession falls under the same head, set off of loss from one source of income with another source of income under the same head is allowable as per the provisions of section 70 - in the case of the assessee provisions of section 73 will not be applicable for the reasons discussed herein above. Therefore set aside the orders of the CIT (A) on this issue and further direct the AO to treat the loss incurred by the assessee with respect to trading in equity shares as loss from business and set off the same against the income earned by the assessee from their profession.
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