2013 (7) TMI 1012

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Respondent: Shri K.C.P. Patnaik O R D E R PER DR. S.T.M. PAVALAN, JM: These cross appeals filed by the Revenue and the Assessee are directed against the common order of the Ld.CIT(A) -17, Mumbai dated 13.10.2011 for the Assessment Year 2004-05. These appeals are disposed off by this common order.   2. The grounds raised in the appeal of the Revenue relate to the addition of Rs. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h the principles of accountancy. Since the closing stock as per last day of the accounting year shall be the opening stock of the subsequent year, the AO worked out the speculation profit/loss on share by taking the opening stock of shares as on 01.04.2003 at Rs. 6,69,18,499/- instead of Rs. 1,01,82,418/- as against the claim of the assessee, thereby arrived the speculation loss at Rs. 4,95,13,114....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rs, the assessee had treated the loss on mutual fund and trading in shares as speculative in nature under Explanation to section 73. However, in the current year, keeping in view the cited decision of the Supreme Court, loss from trading in mutual funds has been bifurcated as normal business income and income from trading in shares as speculative income. In view of that matter, we are of the consi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 4.95 crores and (c) Rs. 5,32,395/- expenses allocated to speculation income is not considered in computation of business income. 3.2 Having heard both the parties and perused the material on record, it is observed that except the addition of Rs. 5,32,395/- on account of expenses allocated to speculative business which has not been considered while computing the business income, the assessee i....