TMI Blog2015 (4) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... tivity 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 is granting loans and advances as would appear from the volume indicated in the chart above for a number of years. Therefore, the view taken by the learned Tribunal appears to be the correct view of the matter. - Decided in favour of assessee. - ITA 132 of 2007 - - - Dated:- 19-3-2015 - Girish Chandra Gupta And Arindam Sinha JJ. For the Appellant : Md. Nizamuddin, Mr. N.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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/- ₹ 1,15,13,903 Rs.75,41,281/ Rs.78,21,578/ Comparative Statement of Income : Business Y.E.31.03.1999 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealings in shares. Therefore he submitted that the principal business of the assessee is granting of loans and advances and not dealing in shares. Mr. Poddar, learned Senior Advocate drew our attention to the Explanation appended to Section 73 of the Income Tax Act which reads as follows :- Explanation: Where any part of the business of a company (other than a company whose gross 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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