https://www.taxtmi.com/caselaws?id=206835 The Explanation to Section 73 deems a company's loss from purchase and sale of shares of other companies as speculation loss, even where the shares are actually delivered. That statutory fiction operates for Section 73 and cannot be ignored merely because Section 43(5) defines speculative transactions by reference to settlement otherwise than by delivery. The provision therefore treats the covered share-trading loss as speculation business loss, with the consequence that set-off and carry forward under Sections 70, 71 and 72 are denied to that extent. The discussion emphasises that the legislative intent of the deeming rule must be given effect. en-us Thu, 17 Mar 2011 00:00:00 +0530 Fri, 18 Nov 2011 07:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206835 The Explanation to Section 73 deems a company's loss from purchase and sale of shares of other companies as speculation loss, even where the shares are actually delivered. That statutory fiction operates for Section 73 and cannot be ignored merely because Section 43(5) defines speculative transactions by reference to settlement otherwise than by delivery. The provision therefore treats the covered share-trading loss as speculation business loss, with the consequence that set-off and carry forward under Sections 70, 71 and 72 are denied to that extent. The discussion emphasises that the legislative intent of the deeming rule must be given effect. Case-Laws Income Tax Thu, 17 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206835