TMI Blog1995 (9) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... of law have been referred to the decision of this court which arose out of its order in I. T. A. No. 893/(Ahd) of 1978-79 relating to the assessment year 1975-76. We have heard learned counsel for the Revenue. None appears for the assessee in spite of service : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the loss as wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n individual and he carries on business in shares. The assessee sustained a loss of Rs. 8,128 in the previous year corresponding to the assessment year 1975-76 on certain transactions of shares. The Income-tax Officer disallowed the loss on the ground that the said loss in his opinion was speculation loss. It was on the basis that there was no actual delivery of the shares at the time of purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an by the actual delivery or transfer of the commodity or scrips. However, it also provides certain exceptions to the aforesaid. Clause (b) of the proviso to sub-section (5) provides that a contract in respect of stocks and shares entered into by a dealer or investor therein to guard against loss in his holdings of stocks and shares through price fluctuations, shall not be deemed to be a speculati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(5), proviso (b), permits hedging in respect of stock-in-trade to guard against fluctuations in prices. It is pertinent to note that the transactions connected with the purchase and sale of the said shares which were settled by way of payment of dues ultimately did not exceed the total quantity of scrips handed over to the brokers and, therefore, the genuineness or otherwise of the said transact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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