2017 (1) TMI 1752

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....mber This is assessee's appeal. The assessee has raised the ground that the learned CIT(A) has erred in law and on facts i) In applying Explanation to Section 73 to deem the loss of Rs. 2,0-4,640 as a speculation loss without appreciating the fact that it was incurred on squaring off of erroneous trades executed on behalf of the clients and devolved on the appellant. ii) In confirming all....

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....mers were erroneously executed by the assessee's employees and as per the norms and to save its reputation the assessee had to settle and bear the losses due to the operational errors and bad deliveries. Such exigencies are faced by the assessee in normal course of its business. The assessee gave evidence in this behalf which has been rejected merely on the observation that they are handwritten. B....

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....s. Further it may be noted that these are essential for undertaking broking activity, wherein the company buys/ sells shares on behalf of its clients and hence are fully allowable as normal business expenditure. These expenses are incurred for institutional stock broking business as a whole. The details of trading expenses of Rs. 728,560 incurred for the year along with sample supporting inv....

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....the turnover and assessee's commission income, operational default by assessee's huge staff cannot be held as unreasonable. The assessee's total income is a loss and not a positive figure. The accounts are duly audited and follow the established rules and norms. The loss caused by operational default of the employees cannot be treated as loss on account of speculation activity of the assessee and ....