2021 (1) TMI 165

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....or allocation of composite expenses towards the speculation activities of the appellant. However, the Hon. Bench has inadvertently missed out a contention made during the hearing that under the statute there is no provision to such effect. The authorized representative had also referred to the ratio of the decision of the Hon. Supreme Court in the case of Rajasthan State Warehousing Corporation Vs. CIT (2000) 242 ITR 450 (SC) in this context. The Hon. Bench has also missed out one more contention of the authorized representative that the scope of Explanation to section 73 is confined to the business consisting of only purchase and sale of shares of other companies and not beyond activities of purchase and sale of shares. Accordingly, the....

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....educe the profitability of speculation activity and non-speculation activity independently, the same would not become sacrosanct. Hence, the decision relied upon by the ld. AR at the time of hearing before us on Hon'ble Apex Court in the case of Rajasthan State Warehousing Corporation reported in 242 ITR 450 cannot be made applicable at all in the facts and circumstances of the instant case. Hence, the ground No.1 raised in Miscellaneous Application deserves to be dismissed. 3. We find that the business carried out by the assessee comprise of purchase and sale of shares of other companies was considered as a speculative transaction and the same falls within the Exception provided in Explanation to Section 73 only with effect from 01/04/201....