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2006 (3) TMI 187 - AT - Income TaxCarry forward of losses in Speculation Business - HELD THAT:- A careful perusal of Explanation to section 73 indicates that this Explanation lays down that the expression "speculation business", under the specified circumstances, will cover assessee's business 'to the extent to which the business consists of the purchase and sale of such shares'. Unlike the definition under section 43(5) which defines 'speculative transactions', the provisions of Explanation to section 73 lay down the circumstances in which, and the extent to which, a business is to be deemed as, 'speculation business'. The thrust of the provisions under Explanation to section 73 is on the nature of 'business', rather than nature of 'transaction'. Even the circular itself provides that the Explanation would apply to the business of purchase and sale of shares of certain companies. The case of the assessee is covered by the plain, clear and unambiguous statutory language of the provisions of Explanation to section 73 of the Act which requires no external aid, like object etc. to construe them differently and therefore, the loss suffered on account of acquisition by allotment and sale thereof being in denature of loss arising on purchase and sale of shares of a company and also being in the nature of business of the assessee being purchase and sale of shares of other companies is to be taken as a speculative loss. The appeal of the assessee is dismissed.
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