Nashik Capital Financial Services (P.) Ltd. v. Deputy Commissioner of Incometax

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The Tax Publishers2013 TaxPub(DT) 1722 (Pune-Trib) : (2013) 054 (II) ITCL 0018 : (2013) 142 ITD 0581 : (2013) 025 ITR (Trib) 0048 Income Tax Act, 1961 --Loss--Speculative business Buying and selling of shares on delivery basis--Assessee a private limited company, was engaged in the business of share brokerage and share trading. Assessing officer treated the share trading business of assessee, as a speculation business. Assessee submitted that all transactions were delivery based and hence, the activity should be treated as business activity, instead as speculation as held by assessing officer. *Held:* Section 73 and the Explanation thereto is a specific provision for the companies and applies to them irrespective of the mode of transactions, i.e., delivery based transactions or otherwise. Therefore, assessing officer was justified in treating the income on account of brokerage of shares as business income and income on account of trading of shares by assessee for itself as speculation income within the meaning of section 73 and Explanation thereto. Income Tax Act, 1961 Section 73 In The Itat, Pune a Bench Shailendra Kumar Yadav, J.m. & R. K. Panda, A.m. Nashik Capital Financial Services (P.) Ltd. v. Dy. CIT ITA Nos.691 to 694 (Pune) of 2011 A.Ys. 2000-01, 2002-03 to 2004-05 28 March, 2013 In favour of revenue. Section 73 of the Income-tax Act, 1961 - Losses - In speculation business (Computation of income) Appellant by : Lalit S. Sangle Respondent by : Ann Kapthuama. ORDER *Shailendra Kumar Yadav, J.M.* SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1722 (Pune-Trib) : (2013) 054 (II) ITCL 0018 : (2013) 142 ITD 0581 : (2013) 025 ITR (Trib) 0048

Income Tax Act, 1961

--Loss--Speculative business Buying and selling of shares on delivery basis--Assessee a private limited company, was engaged in the business of share brokerage and share trading. Assessing officer treated the share trading business of assessee, as a speculation business. Assessee submitted that all transactions were delivery based and hence, the activity should be treated as business activity, instead as speculation as held by assessing officer. Held: Section 73 and the Explanation thereto is a specific provision for the companies and applies to them irrespective of the mode of transactions, i.e., delivery based transactions or otherwise. Therefore, assessing officer was justified in treating the income on account of brokerage of shares as business income and income on account of trading of shares by assessee for itself as speculation income within the meaning of section 73 and Explanation thereto.

Income Tax Act, 1961 Section 73

In The Itat, Pune a Bench

Shailendra Kumar Yadav, J.m. & R. K. Panda, A.m.

Nashik Capital Financial Services (P.) Ltd. v. Dy. CIT

ITA Nos.691 to 694 (Pune) of 2011

A.Ys. 2000-01, 2002-03 to 2004-05

28 March, 2013

In favour of revenue.

Section 73 of the Income-tax Act, 1961 - Losses - In speculation business (Computation of income)

Appellant by : Lalit S. Sangle

Respondent by : Ann Kapthuama.

ORDER

Shailendra Kumar Yadav, J.M.