LOSS FROM SPECULATION
Speculative transaction – if actual delivery of share scrips does not take place both for purchases as well as sales – Sec.43(5) – delivery recalled by brothers – No actual delivery – speculative transaction. – Loss can't be set off against business income.
ACIT Vs Claytone Commercial Co. Ltd. (ITAT, Delhi) 67 ITD 118
Ram Lal & Sons Vs ITO (ITAT, Asr) 71 ITD 256
Purchase of shares and sales back to them at a loss – No evidence about effective delivery of shares and payment of purchase consideration – transaction not genuine
CIT Vs Shekhawati Rajputana Trg. Co. (P) Ltd. ( Cal ) 236 ITR 950
Transaction of purchase and sale of units & Government securities by Banking Company through Banker's Receipt without actual delivery – speculative transaction
ANZ Grindlays Bank Vs DCIT ( ITAT, Del) 88 ITD 53
Shares purchased from broker on principal to principal basis and resold without taking physical delivery of shares – Loss by paying difference between purchase and sale value of shares – Speculation loss
Bhikamchand Betala and Sons Vs ITO (Gau) 294 ITR 10
Applicability of Sec. 73 - Set off of Speculation Loss - No need to prove tax avoidance
DCIT Vs Front Line Capital Services Ltd. ( ITAT, Del ) 96 TTJ 201 overruled SMC
decision in Aman Portfolio (P) Ltd. Vs DCIT
Sec. 73 and 43(5) operate in different fields - Sec. 73 applies even to shares transferred with delivery
Rohini Capital Services Ltd. Vs DCIT ( ITAT, Del ) 92 ITD 317
Paharpur Cooling Towers Ltd. Vs DCIT ( ITAT, Kol ) 85 ITD 745
AMP Spg. & Wvg. Mills (P) Ltd. Vs ITO ( ITAT, Ahd-SB ) 100 ITD 142
Provisions of sec. 73 explained in detail
Melville Finvest Ltd. Vs JCIT ( ITAT, Hyd ) 89 ITD 528
DCIT Vs Aakrosh Investment & Leasing (P) Ltd. ( ITAT, Mum ) 90 ITD 287
Yucca Finvest (P) Ltd Vs DCIT ( ITAT, Mum ) 101 ITD 403
Investment companies are not exempted under sec. 73
JCIT Vs Haldia Investment Co. Ltd. ( ITAT, Kol ) 85 ITD 212
RPG Industries Ltd. Vs ACIT ( ITAT, Kol – TM ) 85 ITD 105
Forward transaction – Raw materials in which transaction made must have a direct connection with goods manufactured or items sold.
Delhi Flour Mills Co. Ltd,. Vs CIT (Del) 95 ITR 151
Explanation to section 73 – Physical delivery of shares not relevant – Gross Total income does not consist mainly of income chargeable under the heads "Interest on securities", "Income from House property", "Capital gains" and "Income from other Sources" OR assessee's principle business is not banking or granting loans and advances – Exemptions will not apply
CIT Vs Intermetal Trade Ltd. (MP) 285 ITR 536
