Tribunal denies rectification request for profit on shares; upholds speculation business treatment.

The application for rectification under section 254(2) of the Income-tax Act, 1961 was dismissed by the Tribunal. The Tribunal upheld its earlier decision treating the assessee's profit on shares as part of a speculation business, disallowing set off against other incomes. Citing precedents from the Bombay High Court and the jurisdictional High Court, the Tribunal found no apparent mistake in its order warranting rectification.

---

---

Issues involved: Application u/s.254(2) of the Income-tax Act, 1961 for rectification of the Tribunal's order in ITA No.543/Mum/2008.

Issue 1 - Finding on profit from shares: The assessee moved a Miscellaneous Application u/s.254(2) seeking rectification of the Tribunal's order regarding profit on shares purchased and sold during the year. The Tribunal had previously found that the assessee was engaged in the business of trading shares, thus treated as carrying on speculation business. The Tribunal concluded that loss in trading shares should be treated as loss from speculation business, disallowing set off against other incomes. The Tribunal held that there was no mistake apparent in the order warranting rectification, citing precedents from the Bombay High Court and the Hon'ble jurisdictional High Court. The application for rectification was ultimately dismissed.

Key Phrases:
- Tribunal's categorical finding on the nature of the assessee's business.
- Treatment of loss in trading shares as loss from speculation business.
- Precedents from the Bombay High Court and the Hon'ble jurisdictional High Court.
- Dismissal of the application for rectification.

---