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2014 (12) TMI 808 - HC - Income TaxScope of section 73 for setting off - Whether a single transaction of purchase of shares of TISCO carried forward from settlement to settlement can be said to be series of transactions so as to constitute a speculation business within the scope of Section 73 of the Act depriving the assessee to set off of loss against other business profits – Held that:- The Tribunal was rightly of the view that in the case of Pankaj Oil Mills Versus Commissioner Of Income-Tax, Gujarat [1976 (5) TMI 3 - GUJARAT High Court] has explained the subtle and significant distinction between speculative transaction and hedging transaction – the AO was justified in treating the loss suffered by the assessee as business loss since it was a loss sustained in speculation business – also in Commissioner of Income Tax vs. Shree Textiles [1993 (5) TMI 14 - RAJASTHAN High Court] it has been held that it was a speculation transaction and as such could not be adjusted against the business income. In a case where a trader carries on a business part of which (even one transaction) is in the category of "speculative transaction" as defined under section 43(5) and part of which falls in the category of business, then the object of Explanation 2 is to treat them separately. A single transaction may constitute a speculative business so as to be treated differently from other business under section 28. – Decided against assessee.
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