1975 (5) TMI 20

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....9 suffered by the assessee in the accounting period relevant to the asst. yr. 1970-71 is not to be taken into account for deduction or set off. 2. The facts of the case are not in dispute. The assessee individual is an investor and also a partner in a firm of sharebrokers. During the previous year, he sold 737 shares of Tata Engineering Loco Co. Ltd, and the sum of Rs. 41,916 that he made out o....

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....red therein would not be a capital loss either. 3. We have hard the submission made on either side and in our opinion the lower authorities have not correctly understood the implication of s. 43(5)(b) of he IT Act, 1961, under which a contract in respect of stocks and shares entered into by a dealer or invester therein to guard against loss in his holdings of stock and shares through price fluc....

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....estor therein. When the price of stocks and shares go down, the holder thereof would attempt to cut short his speculative scrip with a view to buy back the same in a depressed market, thereby to even up his deprecation loss in his holdings. This kind of transaction is transparently one in which there is no intention at any time either to effect or take delivery, nor is any taking or giving deliver....