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2006 (7) TMI 130 - HC - Income TaxExplanation to section 73 – applicability - the case of the assessee squarely falls within the four corners of section 73 ibid by virtue of the Explanation, inter alia, for the reasons, that firstly, part of the business of the assessee consists in the purchase and sale of shares of other companies. Secondly, by virtue of this part of the business, the assessee is deemed to have engaged themselves in speculation business as defined in the Explanation appended to section 73. Thirdly, the assessee is not engaged in any of the specified excluded categories of business so as to come out of the clutches of section 73. In these circumstances, the loss suffered by the assessee in share business being in the nature of speculative business by the deeming fiction contained in the Explanation, it cannot be set off against the profit earned by the assessee from the non-speculative business but it can be set off only in accordance with the provisions of section 73
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