Assessee is a company engaged in business of share trading and financing. AO held that the activity of money lending could not be said to be assessee’s principal business activity because majority of funds were deployed in investment in shares rather than loans and advances. AO  held that  Explanation to S.73  is applicable accordingly   disallowed set off of share trading loss against normal business income treating it to be in nature of deemed speculation loss. CIT(A) decided in favour of the assessee. On appeal by the revenue the Tribunal held that in order to determine question of applicability of Explanation to S. 73, AO  could not compare funds deployed in shares held as investment as against funds deployed in business of loans and advances, therefore where funds deployed in business of share dealing/trading were less than funds deployed in business of loans and advances, order passed by AO that activity of granting loans & advances was not principal business of assessee, was not sustainable . Consequently, assessee’s case had fallen outside ambit of Explanation to section 73; thus, loss incurred by it in share transactions was assessable as business loss which could be set off against its business income.  (AY. 2014-2015)