CLSA India Private Limited v. ACIT (2021) 210 TTJ 484 (Mum.) (Trib.)

S. 73 : Losses in speculation business-Share broker-Purchase and sale of shares-Loss incurred from error trades-Not speculative-Allowable as business loss. [S. 28(i)]

Hon’ble Tribunal held that assessee had carried out the transactions of purchase and sale of shares on account of a business exigency and not with an intention to earn profit, therefore, the same would not come within the purview of “Explanation” to section 73 of the Act. The loss on account of transaction in shares cannot be held to be speculation loss hence deleted the disallowance.  (AY. 2003-04)