The Tax Publishers2020 TaxPub(DT) 4877 (Hyd-Trib)

INCOME TAX ACT, 1961

Section 70

Where purchase and sale of shares were made on behalf of assessees by stockbroker on actual delivery, such transactions could not be held to be speculation in nature, and assessee was eligible to set off said loss from income earned by assessees under the head 'Income from business or profession'.

Loss - Set-off - Speculation transaction - Purchase and sale of shares made on behalf of assessees by stockbroker on actual delivery

AO treated loss claimed by assessee from trading in equity shares as speculation loss and rejected claim of the assessee for setting off the loss from income earned by assessees under the head business and profession. Held: The purchase and sale of shares were made on behalf of the assessee by the stockbroker on actual delivery. Such transactions could not be held to be speculation in nature. Once it was held that transactions were not speculative in nature, then gain arising out of such trading transactions shall be subject to be taxed only under the head 'Income from business' in 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 was allowable as per the provisions of section 70 in case of assessee and provisions of section 73 will not be applicable.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14


INCOME TAX APPELLATE TRIBUNAL RULE, 1963

Rule 34(5) Section 254

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