2006 (1) TMI 617

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....5 from business income and not appreciating fact involved with legal provisions of Explanation 2 to section 28 and section 43(5) of the Act." 2. The ld. DR referred to page 4 of the assessment order and pointed out that the assessee has purchased and sold 41,200 shares of Rencal Chemicals Ltd. in the same settlement year through Raj Investments, Mumbai. The details of these are given as under: Sold for you Bought for you Amount Qty. Rate Date Amount Qty. Rate Dt.   5000 50.75 25-11-1994   4000 65.95 29-11           8500 68.55 30-11           15000 70.35 30-11    ....

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....d on Page 5 of the assessment order. The CIT(A) deleted the addition merely by observing that the delivery of the original shares was not required as shares were sold within one week of the purchase. No evidence for the delivery of shares were filed even before the CIT(A). The CIT(A) even did not discuss the provisions of section 43(5) and section 28 read with Explanation (2). The addition was merely deleted on the presumption that looking into the amount of the capital gain which is more than a crore, the assessee should not be treated to have gone for the speculation loss. Thus the order of the CIT(A) must be set aside. 4. Ld. AR on the other hand contended that the transaction entered into were not the speculation transaction. The ass....