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TMI Blog2019 (6) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and in law, the Ld. CIT(A) erred in deleting the disallowance u/s 73 of the I. T. Act of Rs. 69,76,286/- on account of treating share trading loss as speculative loss made by the A.O. 2. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 3. The facts in brief are that the AO during the course of assessment proceedings noticed that major activities of the assessee were from purchase/sale of shares from which the assessee has shown trading loss of Rs. 21,39,273/- in trading its own shares. Therefore, the AO called upon the assessee to explain as to why the trading loss should not be treated as speculation loss which was replied by the assessee vide letter dated 07.12.2015. The AO o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding to the tune of Rs. 48,37,013/- by observing that the total expenses as per Profit & Loss account were Rs. 4,83,70,130/- and apportioned the same as relating to speculative business in the proportion of turnover in the speculative business to the total turnover. 4. In the appellate proceedings, the Ld. CIT(A) allowed the appeal of the assessee by holding that the business of the assessee of share trading and broking is covered in the exceptions provided to explanation to section 73 of the Act and therefore reversed the order of AO. 5. The Ld. A.R. at the outset candidly admitted that the issue in the present case as raised by the Revenue is covered against the assessee by the order of Hon'ble Supreme Court in the case of Sun Tax Inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Turnover Ratio Own 20,49,22,641 20,69,42,057 41,18,64,698 1% Client 19,38,47,71,313 19,21,76,13,569 38,60,23,84,882 99% 19,58,96,93,954 19,42,45,55,626 39,01,42,49,580 Table-B(AO's working in the Assessment Order) Sales Purchases Total Turnover Ratio Own 20,49,22,641 20,69,42,057 41,18,64,698 1% Client 19,38,47,71,313 19,21,76,13,569 38,60,23,84,882 99% 19,58,96,93,954 19,42,45,55,626 39,01,42,49,580 (While calculating the ratio fo own turnover to total turnover the AO wrongly taken the figure of total turnover at Rs. 390,14,24,958/- instead of 3901,42,49,580/-) and thus the expenses pertaining to speculative business was calculated at Rs. 48,37,013/- out of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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