Allowing the appeal, the Court held that the assessee, having received the shares on conversion of partly convertible debentures by allotment of the shares, and, therefore, the question as to whether the shares were allotted in a public issue or on conversion of partly convertible debentures did not make any difference. Since the assessee had not purchased any shares of any other company, the Explanation to section 73 was not applicable in view of the Supreme Court decision wherein the aspect of the difference between the creation and transfer of shares was considered. On conversion of the partly convertible debentures, the shares had been allotted to the assessee by the company from its own capital by creation of the shares and not by transfer of the shares from any other person, and, therefore, the Explanation to section 73 could not be applied to the facts. Therefore, the Tribunal was not justified in holding that the loss on account of the sale of shares was speculation loss and could not be set off against the other income (AY.1996-97)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 73 : Losses in speculation business \u2013Shares received by assessee through conversion of partly convertible debentures by allotment from company’s own capital-No purchase and sale activity by assessee-Shares allotted to assessee by company from its own capital-Tribunal was not justified in holding that the loss on account of sale of shares was speculation loss and could not be set off against the other income. [S.28(i),] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60472","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fJm","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=60472"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60472\/revisions"}],"predecessor-version":[{"id":60473,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60472\/revisions\/60473"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}