TMI Blog2013 (7) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... th the streams, allocation of expenses was not only necessary but inevitable and moreover there had to be some rationale in bifurcating such expenses and when authorities have done it on the basis of profit and volume of the business in the ratio of 2:3 - No error is committed at all by the Tribunal warranting any interference - Decided in favour of Revenue. Case relied upon by the petitioner may not come to the rescue of the appellant in as much as there is no dispute to the fact that the appellant is dealing in the purchase and sale of the shares. It is not being disputed that the business of the appellant is both speculative and non-speculative - Commissioner of Income-Tax vs. Darshan Securities P.Ltd. [2012 (2) TMI 117 - BOMBAY HIGH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the expenses such as interest, depreciation, office and administration aggregating to Rs.13,76,995/- were relatable to both speculative and non-speculative activities, and therefore, the same was bifurcated in the ratio of income 2:3 vide order dated 27.11.2009. 2.2 This was challenged before Commissioner of Income-Tax (Appeals) ( CIT for short). CIT(Appeals) considered facts of the case of appellant in detail and elaborate submissions which were made on this issue. It also further noted that the business of the appellant of purchase and sale of shares is speculative in nature, as per section 73 of the Income Tax Act, whereas other business of the appellant is non-speculative. It also further recorded that the administrative and othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessable under the head Business, profession or vocation , nevertheless the expenses for each business will have to be separately considered, particularly if the loss or profit of each such business has to be separately treated for any purpose of the Act, even though ultimately the tax may be chargeable only on the totality of the profit and loss of the separate businesses. The Court held that where the assessee carries on the business in money lending and speculation keeping only one common account for expenses incurred, for the purpose of computing the loss in speculative transactions to be carried forward, the Income-tax Officer was entitled to make an equitable apportionment of the expenses and add respective apportionment thereof to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee revenue authorities are misconceived and erroneous. According to him, it was not the stage at which such bifurcation could have been made. Again, it was a single and indivisible business carried on by the appellant and therefore no bifurcation could have been made of all the three activities. According to the learned counsel there is interconnection, interlacing and inter-management and common funds and, therefore, all the authorities failed to appreciate that the business in commodities included different items such as shares, bullions etc. He further urged that the decision of Makhanlal Ram Swarup vs. Commissioner of Income-Tax, Lucknow would not be applicable in the instant case. He relied on the judgment of Bombay High Court render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, in absence of any question of law, present appeal need not be entertained. He also urged that stage had already come whereby the authorities needed to bifurcate the expenses. With no proof having been provided by the appellant, these authorities have correctly on the basis of volume and turnover allocated the expenses to different activities undertaken by the appellant. 8. Upon thus having heard both the sides and on examination of material on record, for the reasons to follow, hereinafter, the present Tax Appeal is not entertained. 9. It is not in dispute that the appellant carries on the business of trading of shares, gold bullion and commodities. It is also a matter on record that in the return filed for the assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company consists in 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 purchase and sale of such shares. 10.2 It is to be noted at this stage that judgment of Bombay High Court rendered in the case of Commissioner of Income-Tax vs. Darshan Securities P.Ltd. (supra) relied upon by the petitioner may not come to the rescue of the appellant in as much as there is no dispute to the fact that the appellant is dealing in the purchase and sale of the shares. It is not being disputed that the business of the appellant is both speculative and non-speculative. The authorities have not applied the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
