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TMI Blog2013 (6) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of section 73 of the Act and explanation thereto for the A.Y. 2000-01, 2002-03, 2003-04 and 2004-05. The brief facts of the case are that the assessee is a private limited company engaged in the business of share brokerage and share trading. The assessee has worked as a sub-broker of Joindre Capital Services Ltd. The assessee was engaged in trading of the shares for the customers through the main brokers and earned commission income from the said transactions. Besides, the assessee was also engaged in buying and selling of shares for itself on delivery basis. The said deliveries were taken through Demat Account maintained with the brokers. The assessee company has not maintained separate books of account for the share transactions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elow be set aside and the assessee should be granted relief on this account. Same has been opposed by the Ld. Departmental Representative. She has supported the orders of the authorities below and submitted that the orders of the Assessing Officer and the CIT(A) are as per fact and law which should be upheld. 5. After going through the above submissions and material on record, we find that the Assessing Officer has held the business income of the assessee with regard to purchase and sale of shares for itself as speculation transaction within the meaning of provisions of section 73 and explanation thereto. On the other hand, assessee company has submitted that all transactions were delivery based and hence the activity should be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss total income consists mainly of income which is chargeable under the heads "Interest on securities", "Income from house property", "capital gains" and "Income from other sources"] or a company, the principal business of which is the business of banking or the granting of loans and advances) consists in the purchase and sale of shares of other companies, such company shall, for the purposes of this section, be deemed to be carrying on a speculation business to the extent to which the business consists of the purchase and sale of such shares.] 6. The Hon'ble Bombay High Court in the case of Lokmat Newspapers (P) Ltd. (supra) held as under: "no restriction into the scope and ambit of the deeming fiction which is created by the Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any speculation business"." In view of the above, the CIT(A) was justified in holding that the provision of section 73 and explanation thereto was applicable in the assessee's case and Assessing Officer was justified in treating the income on account of brokerage of shares as business income and income on account of trading of shares for itself as speculation income within the meaning of section 73 and explanation thereto of the Act. The Assessing Officer was further rightly directed to carry forward losses if any as per provisions of the Act. On this account, Ld. Authorised Representative submitted that Assessing Officer has not allowed to carry forward of the losses as directed by the CIT(A). This limited issue is restored to the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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