https://www.taxtmi.com/caselaws?id=22330 HC held that Explanation to s.73 of the Income-tax Act creates a legal fiction deeming the business of purchase and sale of shares by certain companies as "speculation business" for the limited purpose of s.73, irrespective of actual delivery and the definition of speculative transaction under s.43(5). The Explanation applies to companies other than investment, banking or money-lending companies and covers even cases where share trading is the sole business activity. Accordingly, the loss from share trading incurred by the assessee-company was to be treated as speculation loss, not a normal business loss, and could be set off only against speculation profits. Both questions were answered in the negative, in favour of the Revenue. en-us Fri, 09 Mar 1990 00:00:00 +0530 Thu, 04 Dec 2025 16:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22330 HC held that Explanation to s.73 of the Income-tax Act creates a legal fiction deeming the business of purchase and sale of shares by certain companies as "speculation business" for the limited purpose of s.73, irrespective of actual delivery and the definition of speculative transaction under s.43(5). The Explanation applies to companies other than investment, banking or money-lending companies and covers even cases where share trading is the sole business activity. Accordingly, the loss from share trading incurred by the assessee-company was to be treated as speculation loss, not a normal business loss, and could be set off only against speculation profits. Both questions were answered in the negative, in favour of the Revenue. Case-Laws Income Tax Fri, 09 Mar 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22330