1982 (10) TMI 68

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....ns and advances was the principal business of the company and in that view erred in concluding that the loss incurred on sale of shares amounting to Rs. 1,11,358 was not a loss in speculation business. 2. The ITO included a sum of Rs. 1,11,358, being loss in share transaction, in the total income of the assessee without giving any reasons. 3. When the matter went up to the CIT(A) it was poin....

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....siness of general finance and lending of money on interest. The CIT(A) on a consideration of the incomes, derived by the assessee from various sources as also going through the provisions of ss. 104(4) and 109(iia) held that the business of purchase and sale of shares could not be treated as speculation business. He, therefore, directed the ITO to exclude the sum of Rs. 1,13,358 from the total inc....

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....speculation loss. The ld. Counsel for the assessee, on the other hand, took us through the elaborate reasons given by the CIT(A) for coming to the conclusion that the business of the assessee was that of general finance and lending of money on interest. He invited our attention to the Memorandum of Association of the company to point out that one of the main objects, as mentioned in cl. (iv) was t....

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....s placed on the decisions of the Supreme Court in the case of CIT vs. Distributors (Baroda) Pvt. Ltd. 1972 CTR (SC) 275 : (1972) 83 ITR 377 (SC) and Nawn Estate Private Ltd. vs. CIT 1977 CTR (SC) 19: (1977) 106 ITR 45 (SC), and it was submitted that the order of the CIT(A) should be upheld. 5. Having heard the submissions of both the parties and after considering the facts of the case we are of....