The Court held that assessee company was engaged in the business of purchase and sale of shares. Loss from such business was speculative as per Explanation to section 73. The Court rejected the argument of the assessee that in the year when the loss was set off by the assessee, there was only income from other sources and therefore, in such year Explanation would not be applicable. (AY. 2003-04) (ITA No. 1231 of 2009; dt. 21.02.2019)
CIT v. Harrisons Malayalam Financial Services Ltd. (2019) 308 CTR 280 (Ker.)(HC)
S. 73 : Losses in speculation business–Explanation–business of purchase and sale of shares–Held, loss speculative in nature and cannot be set off against income from other source–Held, main income being from other source need not be seen in the year of set off.