TMI Blog2011 (8) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... nd MS SONIA GOKANI, JJ. MRS MAUNA M BHATT for Appellant MR SN SOPARKAR, SR COUNSEL WITH MRS. BHOOMI THAKORE for Respondent ORDER (Per : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue has challenged a judgement of the tribunal dated 24.7.2009 raising following questions for our consideration : Whether the Appellate Tribunal is right in law and on facts in allowing the set off of the dividend income of ₹ 49,28,149/against the speculation loss since dividend is placed under the head Income from other sources ? 2. Issue arises in following factual background. Respondent assessee is a Company engaged in share trading. During the process of such business, it also derives income by way of dividend on sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from inception under the head speculation loss applying explanation to Section 73(4), separating such speculation loss from business income and treating the dividend income under the head from income from other sources. CIT(Appeals) was of the opinion that the Assessing Officer should have first calculated loss/profit of entire business because all the activities(income) are interlinked, inseparable and nondistinguishable. 3. Revenue carried the issue in appeal. Tribunal by impugned judgement rejected the appeal by making minor clarification in the approach adopted by CIT(Appeals). Tribunal was of the opinion that explanation to Section 73 was not properly applied by the Assessing Officer. Such explanation requires the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, be dismissed. Counsel also relied on decision in case of Western States Trading Co. P. Ltd.(supra), Cocanada Radhaswami Bank Ltd. (supra) as well as in case of Brooke Bond and Co. Ltd.(now Brooke Bond Leibig Ltd.) v. Commissioner of Income Tax, West Bengal reported in (1986) 162 ITR 373(SC). 6. Having noticed the facts as emerging and discussion of tribunal and Revenue Authorities, we find that the tribunal's reliance on decision in case of Western States Trading Co. P. Ltd.(supra) and Cocanada Radhaswami Bank Ltd.(supra) is perfectly valid. 7. In case of Cocanada Radhaswami Bank Ltd.(supra), the assessee company was carrying on banking business and had held securities as part of trading assets. During the assessment year unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s held as stock in trade. The Court referred to and relied upon the decision in case of Cocanada Radhaswami Bank Ltd.(supra) and reiterated that amount of dividends would form a part of the income from business of assessee, if the shares were a part of the assessee's trading assets and the assessee would be entitled to a set off as claimed against the loss from its business incurred during the previous years. It was observed that there was no dispute that the shares formed part of the stockintrade of the share dealing business of the assessee and that therefore, there could be no reason for the assessee not being entitled to the set off claimed. 9. In the present case also as already reproduced it has been consistently held from mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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