TMI Blog2020 (11) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... lls under the same head, set off of loss from one source of income with another source of income under the same head is allowable as per the provisions of section 70 - in the case of the assessee provisions of section 73 will not be applicable for the reasons discussed herein above. Therefore set aside the orders of the CIT (A) on this issue and further direct the AO to treat the loss incurred by the assessee with respect to trading in equity shares as loss from business and set off the same against the income earned by the assessee from their profession. - ITA No.1303/H/2017, ITA No.1304/H/2017 - - - Dated:- 8-7-2020 - Shri A. Mohan Alankamony, Accountant Member For the Assessee : Sri T. Chaitanya Kumar For the Revenue : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt assessment year 2013-14 on 25/08/2013 and 24/09/2013 declaring taxable income of ₹ 25,08,040/- and ₹ 23,93,590/- respectively. Subsequently, the case was taken up for scrutiny and the assessment was completed on 3/2/2016 u/s. 143(3) of the Act wherein the Ld. AO disallowed the claim of set off of loss from trading in shares amounting to ₹ 4,54,863 and ₹ 1,21,806/- in the hands of Dr. Vishanji Khimji Karani and Dr. Laxmi Viishanji Karani respectively by holding that the loss in the case of the assessees is arising from speculation business. 5. Before the Ld. AO both the assessees had submitted that they were purchasing and selling equity shares through their stockbroker on actual delivery basis. However, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id funds traded in listed equity shares through stockbroker M/s. Kotak Security Limited based on their advice. The Ld. AR further submitted that the assessees had not indulged in any forward trading of shares. It was further submitted that both the assessees had purchased and sold shares through the stockbroker on actual delivery basis and the accounts have been settled on a periodically. It was therefore pleaded that the addition made by the Ld. AO is erroneous and therefore the same may be deleted. The Ld DR on the other hand relied on the orders of the Ld. Revenue Authorities and argued in support of the same. 8. I have heard the rival submissions and carefully perused the material on record. From the facts of the case it is apparent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m business in the case of the assessee. Since income from business and income from profession falls under the same head, set off of loss from one source of income with another source of income under the same head is allowable as per the provisions of section 70 of the Act. Further in the case of the assessee provisions of section 73 will not be applicable for the reasons discussed herein above. Therefore, I hereby set aside the orders of the Ld. CIT (A) on this issue and further direct the Ld. AO to treat the loss incurred by the assessees with respect to trading in equity shares as loss from business and set off the same against the income earned by the assessees from their profession. 9. Before parting, it is worthwhile to mention tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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