9911796707
Advanced Search 
TMI Blog2015 (4) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... The Court :- The appeal was admitted on 28th March, 2007 pertaining to the Assessment Year 2001-02. The question formulated at the time of admission reads as follows :- "Whether on the facts and in the circumstances of the case a company carries as its principal business, acquisition of shares, debenture, debenture stock or securities issued by the Government local authority or other marketable s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Deployment of Funds : Business Y.E.31.03.2009. Y.E.31.03.2000 Y.E.31.03.2001 Y.E.31.03.2002 Y.E.31.03.2003 Y.E.31.03.2004 Granting of loan Rs.6,13,966/- Rs.21,76,031/- Rs.1,14,54,522/ Rs.1,44,82,536/- Rs.2,23,60,324/- Rs.3,37,15,822/- Stock in trade of share Rs.2,77,875/ Rs.51,72,680/ Rs.58,81,217/- Rs. 1,15,13,903 Rs.75,41,281/ Rs.78,21,578/ Comparative State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of trading in shares whereas the assessee had earned a sum of Rs. 13.48 lakhs approximately from out of interest on loans and commission and brokerage. Mr. Nizamuddin, learned Advocate appearing for the appellant submitted that the question as to which one is the principal activity of the assessee should depend upon the profits earned during the relevant year. Profits were earned only from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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." He submitted that under Sub-Section 1 of Section 73 it has been provided that speculation loss shall be set off only from out of income arising out of speculation. The aforesaid stipulation ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (1). In the case before us the activity of granting loans and advances is on a larger scale than the business of buying and selling shares. Both profit and loss are matters of chance in both the activities. Therefore profit alone was not made the distinguishing factor. Since business activity is also a distinct factor, we are inclined to think that the principal business of the company/assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
