Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 700 - AT - Income TaxApplicability of section 73 - share trading loss treated as non-speculative loss - assessee is engaged in the business of share broking as well as share trading - Whether loss incurred on shares and derivatives cannot be treated as speculation loss? - as per AO as a share broker, the assessee is not liable for any profit earned or loss incurred out of the transactions in purchase and sale of shares on behalf of the clients and only benefit which accrues to the assessee company from such transactions is the brokerage income earned by it from its clients for executing the transactions on behalf of them - CIT(A) had granted relief to the assessee as assessee's case falls under the exception clause provided in Explanation to Section 73 HELD THAT:- One of the exception provided therein is if the composition of gross total income comprises mainly of income other than the business income. In the instant case, it is not in dispute that the income from other sources which is much more than income from business. Hence the assessee's case squarely falls under the exception clause provided in Explanation to Section 73 of the Act. Also the issue is also squarely covered in favour of the assessee by the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. Darshan Securities (P) Ltd. [2012 (2) TMI 117 - BOMBAY HIGH COURT]. Accordingly, we hold that the loss incurred on shares and derivatives cannot be treated as speculation loss in the instant case. Consequently, there is no need to apportion any expenses to the speculation activity - Appeal of the revenue is dismissed.
|