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2021 (4) TMI 847 - AT - Income TaxDenial of the loss by treating as speculation loss - CIT(A) upheld the action of AO referring the decision of Hon'ble Kolkata High Court in CIT vs. Arvind Investments Ltd.[1990 (3) TMI 5 - CALCUTTA HIGH COURT] - HELD THAT:- Asgross total income of assessee was required to be computed inter-alia by computing the income under head profit and gain of business and profession as a whole, both the income from service charges in the amount of ₹ 2.25 crore and loss in share trading of ₹ 2.23 crore would have to be taken into account in computing the income under that head, both the being sources under the same head. Further, the assessee has a dividend income of ₹ 4.7 lakhs under the head income from other sources, thus, assessee falls within the purview of exception carved out in explanation to Section 73 of the Act and assessee would not be deemed to be carrying on speculation business for the purpose of Section 73(1) The facts in case law of Arvind Investments Ltd [1990 (3) TMI 5 - CALCUTTA HIGH COURT] relied by Ld. CIT(A) are at variance. In the said case Tribunal held that the sole business of the company was in share dealings. As accepting the assessee's contention it held that where a part of the business of a company consisted of the purchase and sale of shares, then only the Explanation to section 73 would come into play and not otherwise when the sole business of the company was in share dealings. However, the facts in the present case is entirely differ that is income shown by assessee is mainly consist of income from other sources. We found that the income shown by assessee is mainly consist of income from other sources of ₹ 94,28,211/-. Thus, in our view the assessee fall within the purview of Section 73 of the Act, accordingly, ground no.1 to 3 of assessee are allowed.
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