2020 (11) TMI 445

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....he appeals are taken up together for hearing and disposed off by this common order. 2. Both the assessees have raised identical grounds in their appeals however, the cruxes of the issues are that::- (i) The Ld. CIT (A) has erred in confirming the order of the Ld. AO who had treated the loss from trading in equity shares of Rs. 4,54,863/- and Rs. 1,21,806/- in the case of Dr. Vishanji Khimji Karani and Dr. Laxmi Viishanji Karani respectively as speculation loss and rejected the claim of the assessees for setting off the loss from the income earned by the assessees under the head 'business & profession'. (ii) The Ld. CIT (A) has erred in confirming the levy of interest U/s. 234C and 234D of the Act. 3. Since the second....

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....es carried the matter on appeal before the Ld. CIT (A). On perusing the issue, the Ld. CIT(A) was also of the view that even the delivery-based transactions of purchase and sale of shares will not have any effect on the provisions of section 73 of the Act. The Ld. CIT (A) further examining the statement issued by M/s. Kotak Securities limited towards the transactions pertaining to the purchase and sale of equity shares on behalf of the assessee observed that they do not correlate with the bank receipts and payments of the assessees with respect to every purchase and sale transaction of equity shares. Further, the Ld. CIT (A) opined that even if it is held that the loss arising out of purchase and sale of equity shares are not from speculati....

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.... are made without delivery it can be said to be speculative in nature. In the case of the assessee the stockbroker treats the assessee as debtor for the purchase of equity shares made on behalf of the assessee and creditor for the sale of the equity shares held by the assessee which may be kept in the possession of the stockbroker. Provisions of section 43(5) of the Act clearly specify that where transactions are entered between parties with respect to purchase and sale of commodities or stock otherwise than by actual delivery then the transaction shall be treated as 'speculative' in nature. On verifying the statement issued by the stockbroker M/s. Kotak Security Limited with respect to the transactions made on behalf of the assessee, I do ....