2014 (8) TMI 1149

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....2009 is an appeal filed by the assessee against the order of ld. Commissioner of Income Tax (Appeals)-VI , Kolkata in Appeal No. 331/CIT(A)-VI/07-08/Kol . dated 24.06.2009 for the assessment year 2001-02. 2. Shri Soumitra Choudhury, Advocate, represented on behalf of the assessee and Shri Varinder Mehta, CIT, D.R. , represented on behalf of the Revenue. 3. In respect of ITA 1501/Kol/2009 it was submitted by the ld. A.R. that the issue was against the act ion of the ld. CIT(Appeals) in holding that the loss on account of trading in shares was hi t by the Explanation to Section 73 of the Income Tax Act . Ld. A.R. drew our attention to the assessment order wherein in page 1, the Assessing Officer has given the break-up of the assessee's ....

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....the Act and consequently the same cannot be treated as speculation loss. 6. In the result , the appeal of the assessee is allowed. 7. In connect ion with the appeal of the assessee in ITA No. 1502/Kol/2009, it was the submission that the assessee had incurred a loss of Rs. 66,40,85,844/- on account of share transactions losses. It was the submission that the assessee was share broker and the assessee had made purchases of nearly Rs. 502 crores and sales of Rs. 434 crores. It was the submission that in the course of assessment , the Assessing Officer had disallowed the assessee's claim of losses of Rs. 66.40 crores by holding that the Explanation to Sect ion 73 of the Act applied. It was the submission that before the ld. CIT(Appeals) ....

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....rected to treat the business of the assessee as speculation business and al low the set off of the speculation income of Rs. 50.28 crores against the speculation loss of Rs. 60.40 crores. 8. In reply, ld. CIT, D.R. vehemently supported the order of the Assessing Officer and ld. CIT(Appeals). 9. We have considered the rival submissions. A perusal of the assessment order clearly shows that the assessee is a share broker. The Profit & Loss A/c. of the assessee clearly shows that the assessee's business is only purchases and sales of shares. The balance-sheet of the assessee shows that the assessee is only doing the business of dealing in shares so also the Director's report . A perusal of the decision of the Hon'ble jurisdictional High C....