CIT v. Darshan Securities (P) Ltd.

341 ITR 556High Court2012#4431 most cited

What is CIT v. Darshan Securities (P) Ltd. authority for?

A company involved in the purchase and sale of shares is deemed to be carrying on a speculative business to the extent of such transactions, unless it falls under an exception to Section 73 of the Income Tax Act.

27

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2015 to 2024.

Also referred to as

CIT v Darshan Securities · Section 73 · speculation loss · share trading · business income · Explanation to Section 73 · set off loss · Explanation to Section 73 of the Act · purchase and sale of shares · speculative business

Also reported as

18 Taxmann.com 142

Sections most often in play

Section 1961Section 73 of the IT Act

Judgments citing CIT v. Darshan Securities (P) Ltd.

M/S AMU SHARES AND SECURITIES LTD,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-4(1)(1), MUMBAI

In the result, appeal of the assessee is allowed

ITA 4364/MUM/2023[2009-10]Status: DisposedITAT Mumbai26 Jul 2024AY 2009-10

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHRI (Accountant Member)

Section 143(3)Section 317Section 73

…mounting Rs.80,33,000/- as speculation loss is hereby confirmed. Thus, the sole ground of appeal is hereby dismissed. 7. Before us, ld. Counsel submitted that this issue is squarely covered by the following decisions:- 1. CIT vs. Darshan Securities Pvt. Ltd. (341 ITR 556 Bom.) 2. CIT vs. HSBC Securities and Capital Markets (India) Private Limited (208 Taxman 439, Bom) 3. CIT v. Madona Commercial (P.) Lptd (257 Taxman 116, Bom) 4. DCIT v. Quant Securities (P) Ltd [[2022] 145 taxmann.com 355 (Mum-Trib)] 6 Amu shares and Securities Ltd 5. Af-taab Investment Company Ltd. VS ACIT Circle-2(1), in I.T.A. No. 6913/Mum/2…

DCIT CIR 4 (2)(1), MUMBAI vs. M/S QUANT SECURITIES PVT LTD., MUMBAI

In the result, the appeal of the revenue is dismissed

ITA 7756/MUM/2019[2014-15]Status: DisposedITAT Mumbai02 Sept 2022AY 2014-15
Section 143(3)Section 43(5)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI M.BALAGANESH, ACCOUNTANT MEMBER DCIT, CIR 4(2)(1) Vs. M/s. Quant Securities Pvt. Room No.642, 6th Floor Ltd., 612-617, 6th Floor Aayakar Bhawan M.K.Road Maker Chamber IV Mumbai – 400 020 Nariman Point, Mumbai- 400 021 PAN/GIR No.AAACQ1648R (Appellant) .. (Respondent) Assessee by Shri Jitendra Sanghvi & Shri Amit Khatiwala Revenue by Smt. Mahita Nair Date of Hearing 25/08/2022 Date of Pronouncement 02/09/2022 आदेश / O R D E R PER M. BALAGANESH (A.M): This appeal in ITA No.7756/Mum/2019 for A.Y.2014-15 a…

AF-TAAB INVESTMENT CO. LTD.,MUMBAI vs. ASST.C.I.T. CIR.2(1), MUMBAI

The appeal is dismissed

ITA 6913/MUM/2012[2002-03]Status: DisposedITAT Mumbai26 Mar 2021AY 2002-03

Bench: Hon’Ble Justice P. P. Bhatt & Hon’Ble Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 6913/Mum/2012 (निर्धारणवर्ा / Assessment Year: 2002-03)

For Appellant: Shri P. J. Pardiwala &For Respondent: Shri Brajendra Kumar
Section 271(1)(c)Section 274Section 27lSection 73

…ii) CIT vrs. Navinchandra & Co. (2014) 42 taxmann.com 28 (Guj) iii) SRJ Securities Ltd. vrs. ITO (2011) 16 taxmann.com 90 (Del) 10. On merit, he relied on the decision of Hon’ble Bombay High Court in the case of CIT Vrs. Darshan Securities Pvt. Ltd (2012) 341 ITR 556(Bom), wherein it was held as under:- 7. The submission which has been urged on behalf of the Revenue is that in computing the gross total income for the purpose of the explanation to Section 73, income under the heads of profits and gains of business or profession must be ignored. Alternatively, it has been urged that where the income from busin…

MEGHA PROPERTY DEVELOPERS LTD,MUMBAI vs. ITO 4(2)(4), MUMBAI

In the result, appeal of the assessee is partly allowed

ITA 398/MUM/2016[2011-12]Status: DisposedITAT Mumbai19 Jun 2020AY 2011-12

Bench: Shri Mahavir Singh, Vp & Shri M.Balaganesh, Am M/S. Megha Property Vs. Ito-4(2)(4) Room No.647, 6Th Floor Developers Ltd., 701A, Niranjan Aayakar Bhavan 99, Marine Drive M.K. Road Mumbai – 400 002 Mumbai – 400 020 Pan/Gir No.Aaffm5593B (Appellant) .. (Respondent)

Section 143(3)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH MUMBAI BEFORE SHRI MAHAVIR SINGH, VP & SHRI M.BALAGANESH, AM M/s. Megha Property Vs. ITO-4(2)(4) Room No.647, 6th Floor Developers Ltd., 701A, Niranjan Aayakar Bhavan 99, Marine Drive M.K. Road Mumbai – 400 002 Mumbai – 400 020 PAN/GIR No.AAFFM5593B (Appellant) .. (Respondent) Assessee by Shri B.V.Jhaveri Revenue by Ms. Kavita P. Kaushik Date of Hearing 08/01/2020 Date of Pronouncement 19/06/2020 आदेश / O R D E R PER M. BALAGANESH (A.M): This appeal in ITA No.398/Mum/2016 for A.Y.2011-12 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-9…

SMK SHARES AND STOCK BROKING,MUMBAI vs. DCIT - 4(2)(1), MUMBAI

In the result, this ground of appeal is allowed for statistical

ITA 4928/MUM/2018[2013-14]Status: DisposedITAT Mumbai20 Nov 2019AY 2013-14

Bench: Shri Pramod Kumar, Vice- & Shri Pawan Singhsmk Shares & Stock Broking Dcit-4(2)(1) Pvt. Ltd., 617, Palm Spring Aayakar Bhavan, Center, Link Road, Malad (W), Vs. M.K. Road, Mumbai 400 064 Mumbai- 400020 Pan – Aabcs4531Q Appellant Respondent Appellant By : Shri Satish Mody (Ar) Respondent By : Shri V. Vinod Kumar (Sr.Dr)

For Appellant: Shri Satish Mody (AR)For Respondent: Shri V. Vinod Kumar (Sr.DR)
Section 14ASection 254(1)Section 73

…IN THE INCOME-TAX APPELLATE TRIBUNAL “G” BENCH MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE-PRESIDENT AND SHRI PAWAN SINGH JUDICIAL MEMBER SMK Shares and Stock Broking DCIT-4(2)(1) Pvt. Ltd., 617, Palm Spring Aayakar Bhavan, Center, Link Road, Malad (W), Vs. M.K. Road, Mumbai 400 064 Mumbai- 400020 PAN – AABCS4531Q Appellant Respondent Appellant by : Shri Satish Mody (AR) Respondent by : Shri V. Vinod Kumar (Sr.DR) Date of Hearing : 11.09.2019 Date of Pronouncement : 20.11.2019 ORDERUNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. The appeal by assessee is directed against the order of…

MAGIC SHARE TRADERS LTD.,AHMEDABAD vs. THE ITO, WARD-2(1)(4), AHMEDABAD

In the result, appeal of the assessee is partly allowed

ITA 635/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad11 Sept 2019AY 2014-15

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 635/Ahd/2018 ("नधा"रण वष" / Assessment Year: 2014-15) Magic Share Traders Ltd. बनाम/ Ito 101, Akashganga Building, Ward- 2(1)(4) Vs. Nr. Gujarat College Road, Ahmedabad Ellis Bridge, Ahmedabad- 380006 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aae Cm9 542 L .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri S. N. Soparkar & Parin
Section 43(5)Section 73

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘B’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER, & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 635/Ahd/2018 ("नधा"रण वष" / Assessment Year: 2014-15) Magic Share Traders Ltd. बनाम/ ITO 101, Akashganga Building, Ward- 2(1)(4) Vs. Nr. Gujarat College Road, Ahmedabad Ellis Bridge, Ahmedabad- 380006 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAE CM9 542 L .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से /Appellant by : Shri S. N. Soparkar & Parin Shah, ARs Shri Mudit Nagpal, Sr.…

DCIT 11(2)(1), MUMBAI vs. SHREE MOTHER CAPFIN AND SECURITIES P.LTD, MUMBAI

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

ITA 3903/MUM/2017[2009-10]Status: DisposedITAT Mumbai26 Jul 2019AY 2009-10

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.3903/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2009-10) The Dy. Commissioner Of बिधम/ M/S. Shree Mother Capfin Income Tax-11(2)(1) & Securities Pvt. Ltd. Vs. Room No.477, Aayakar A-11/2, S.V. Road, Shree Bhavan, M.K. Marg, Ram Nagar, Andheri (W), Mumbai-400020. Mumbai-58 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcr4418F (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Chaudhary Arun Kumar Singh (Sr. Ar) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 22/07/2019 घोषणा की तारीख /Date Of Pronouncement: 26/07/2019 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 28.02.2017 Passed By The Commissioner Of Income Tax (Appeals) -18, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2009- 10 In Which The Penalty Levied By Ao Has Been Ordered To Be Deleted.

For Appellant: NoneFor Respondent: Shri Chaudhary Arun Kumar
Section 143(3)Section 14ASection 271(1)(c)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI AMARJIT SINGH, JM आयकर अपील सं/ I.T.A. No.3903/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2009-10) The Dy. Commissioner of बिधम/ M/s. Shree Mother Capfin Income Tax-11(2)(1) and Securities Pvt. Ltd. Vs. Room No.477, Aayakar A-11/2, S.V. Road, Shree Bhavan, M.K. Marg, Ram Nagar, Andheri (W), Mumbai-400020. Mumbai-58 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AABCR4418F (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue by: Shri Chaudhary Arun Kumar Singh (SR. AR) Assessee by: None सुनवाई की तारीख / Date of Hearing: 22…

THE ACIT 4(2)(1), MUMBAI vs. M/S. PRIYASHA MEVEN FINANCE LTD, MUMBAI

In the result, both the appeals of the Revenue are dismissed

ITA 5655/MUM/2017[2013-14]Status: DisposedITAT Mumbai26 Mar 2019AY 2013-14

Bench: Shri Rajesh Kumar & Shri Amarjeet Singh

For Appellant: Shri Firoze Andhyarujina, A.RFor Respondent: Shri Abi Rama Kartikeyan, D.R
Section 143(1)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “C”, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI AMARJEET SINGH, JUDICIAL MEMBER ITA Nos.5655 & 5656/M/2017 Assessment Years: 2013-14 & 2014-15 ACIT 4(2)(1), M/s. Priyasha Meven R.No.642, Finance Ltd., 6th Floor, Room No.404, Rotunda Vs. Aayakar Bhavan, Bldg., M.K. Road, Mumbai Samachar Marg, Mumbai - 400020 Fort, Mumbai - 400023 PAN: AADCP 2042F (Appellant) (Respondent) Present for: Assessee by : Shri Firoze Andhyarujina, A.R. Revenue by : Shri Abi Rama Kartikeyan, D.R. Date of Hearing : 25.02.2019 Date of Pronouncement : 26.03.2019 O R D E…

MAGIC SHARE TRADERS LTD.,AHMEDABAD vs. THE DY.CIT, CIRCLE-2(1)(2), AHMEDABAD

In the result, the assessee gets relief as claimed in Ground Nos

ITA 770/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad31 Oct 2018AY 2012-13

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad, Judicial Memebr

For Appellant: Shri S. N. Soparkar, A.R
Section 14ASection 28Section 43(5)Section 73

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘C’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR आयकर अपील सं./I.T.A. No. 770/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2012-13) Magic Share Traders Ltd. बनाम/ Deputy Commissioner of 101, Akashganga Building, Income Tax Vs. Nr. Gujarat College Road, Circle-2(1)(2), 1st Floor, Navjivan Trust Ellis Bridge, Ahmedabad - 380006 Building Office, Ashram Road, Ahmedabad - 380014 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAECM9542L .. (अपीलाथ" /Appellant) (""यथ" / Respond…

AMU SHARES & SECURITIES LTD,MUMBAI vs. DCIT 4(1), MUMBAI

In the result the appeal of assessee is allowed for statistical purpose

ITA 408/MUM/2016[2009-10]Status: DisposedITAT Mumbai27 Apr 2018AY 2009-10

Bench: Shri G.S.Pannu & Shri Pawan Singh

For Respondent: Sh. Rajesh Kumar Sr DR
Section 143Section 143(3)Section 14ASection 154Section 253Section 254(1)Section 73Section 73(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “A” MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No.408 /Mum/2016 (Assessment Year- 2009-10) Amu Shares & Securities Ltd. Deputy Commissioner of Crescent Chambers, Ground Income tax, 4(1) Vs. Floor, Homi Modi Street, Fort, Aayakar Bhavan, Mumbai-400020. Mumbai-4000 01. PAN: AAACA3778L (Appellant) ( Respondent) Assessee by Shri B.V. Jhaveri, B.J. Vyas, : Devang Divecha & Devershi Mehta (AR) Revenue by : Sh. Rajesh Kumar Sr DR Date of hearing : 15.02.2018 Date of Pronouncement : 27.04.2018 Order Under Section 254(1) of…

BLUEBERRY TRADING COMPANY P.LTD,MUMBAI vs. DCIT 3(1), MUMBAI

In the result, appeal filed by assessee is allowed

ITA 2388/MUM/2013[2009-10]Status: DisposedITAT Mumbai14 Mar 2018AY 2009-10

Bench: Shri B.R.Baskaran & Shri Pawan Singhblueberry Trading Company Pvt. Dcit -3(1) Ltd., 373, Konark House, Veer Aayakar Bhavan, M.K. Road, Savarkar Road, Ground Floor, Near Mumbai-20. Siddhi Vinayak Temple, Vs. Prabhadevi, Dadar (West), Mumbai-400028 Pan:Aabcb5512E (Appellant) (Respondent) Assessee By : Shri Nitesh Joshi (Ar) Revenue By : Shri Suman Kumar (Dr) Date Of Hearing : 31.01.2018 Date Of Pronouncement : 14.03.2018 Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By Assessee Under Section 253 Of Income Tax Act Is Directed

For Appellant: Shri Nitesh Joshi (AR)For Respondent: Shri Suman Kumar (DR)
Section 253Section 254(1)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “B”, MUMBAI BEFORE SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER Blueberry Trading Company Pvt. DCIT -3(1) Ltd., 373, Konark House, Veer Aayakar Bhavan, M.K. Road, Savarkar Road, Ground Floor, Near Mumbai-20. Siddhi Vinayak Temple, Vs. Prabhadevi, Dadar (West), Mumbai-400028 PAN:AABCB5512E (Appellant) (Respondent) Assessee by : Shri Nitesh Joshi (AR) Revenue by : Shri Suman Kumar (DR) Date of hearing : 31.01.2018 Date of Pronouncement : 14.03.2018 Order Under Section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This a…

ITO, WD-15(4), KOLKATA, KOLKATA vs. M/S NILLIAMPATHY TRACON PVT. LTD., KOLKATA

In the result the appeal by the revenue is dismissed

ITA 538/KOL/2016[2006-07]Status: DisposedITAT Kolkata01 Dec 2017AY 2006-07

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am ] Assessment Year : 2006-07

For Appellant: Shri Sunil Surana, FCAFor Respondent: Shri Arindam Bhattacharjee, Addl. CIT
Section 43Section 43(5)Section 43(5)(d)

…me. In this regard he drew our attention to the computation of taxable income of the AO in the order of assessment. 11. The ld. Counsel drew our attention to the decision of he Hon’ble Bombay High Court in the case of CIT vs M/s. Darshan Securities Pvt. Ltd. 341 ITR 556 (Bom). The ITA No.474 & 538/Kol/2016 M/s. Nilliampathy Tracon Pvt. Ltd. A.Y.2006-07 Hon’ble Bombay High Court took the view that the words 'consists mainly' are indicative of the fact that the legislature had in its contemplation that the gross total income consists predominantly of income from the four heads that are referred to therein. Obviou…

M/S NILLIAMPATHY TRACON PVT. LTD.,KOLKATA vs. ACIT, CIR-9, KOLKATA, KOLKATA

In the result the appeal by the revenue is dismissed

ITA 474/KOL/2016[2006-07]Status: DisposedITAT Kolkata01 Dec 2017AY 2006-07

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am ] Assessment Year : 2006-07

For Appellant: Shri Sunil Surana, FCAFor Respondent: Shri Arindam Bhattacharjee, Addl. CIT
Section 43Section 43(5)Section 43(5)(d)

…me. In this regard he drew our attention to the computation of taxable income of the AO in the order of assessment. 11. The ld. Counsel drew our attention to the decision of he Hon’ble Bombay High Court in the case of CIT vs M/s. Darshan Securities Pvt. Ltd. 341 ITR 556 (Bom). The ITA No.474 & 538/Kol/2016 M/s. Nilliampathy Tracon Pvt. Ltd. A.Y.2006-07 Hon’ble Bombay High Court took the view that the words 'consists mainly' are indicative of the fact that the legislature had in its contemplation that the gross total income consists predominantly of income from the four heads that are referred to therein. Obviou…

M/S. SOEX IN vs. T & FIN. PVT.LTD.(NOW KNOWN AS SOPARIWALA EXPORTS P.LTD.),MUMBAIVS.INCOME TAX OFFICER-WARD-3(3)(3), MUMBAI

Accordingly, the cross objection raised by the assessee is allowed

ITA 6415/MUM/2008[2003-2004]Status: DisposedITAT Mumbai27 Sept 2017AY 2003-2004

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2003-04

For Appellant: Mr. Pankaj R. Toprani, ARFor Respondent: Mr. V. Justin, DR
Section 119Section 143(3)Section 73Section 73(4)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E” MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2003-04 M/s Soex Investment & ITO-3(3)(3), Finance Pvt. Ltd. (Now Aaykar Bhavan, M.K. Road, Vs. known as Sopariwala Mumbai-400020. Exports P. Ltd.) 21A Nirmal, Nariman Point ,Mumbai-400021. PAN No. AACCS1620D Appellant Respondent Assessment Year: 2003-04 ITO-3(3)(3), M/s Soex Investment & Aaykar Bhavan, M.K. Road, Finance Pvt. Ltd. (Now Vs. Mumbai-400020. known as Sopariwala Exports P. Ltd.) 21A Nirmal, Nariman Point Mumbai-400021. PAN No. AACCS162…

ITO, WD-2(4), KOLKATA, KOLKATA vs. M/S SUVRIDHI CAPITAL MARKETS LTD., KOLKATA

In the result, both the appeals filed by the Revenue (ITA No

ITA 830/KOL/2015[2008-2009]Status: DisposedITAT Kolkata31 Aug 2017AY 2008-2009

Bench: Shri N. V. Vasudevan, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita No.830 & 831/Kol/2015 (िनधा"रण वष" / Assessment Year: 2008-09 & 2010-11) Vs. M/S Suvridhi Capital I.T.O., Ward – 2(4), Kolkata Markets Ltd. 516, Kamalalaya Centre, 156A, Lelin Sarani, Kolkata – 700 013. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaecs 4092 F ( Appellant) .. (Respondent) Appellant By :Shri G. H. Sema, Acit(Dr) Respondent By :Shri Ashis Kumar Rustogi, Fca सुनवाई की तारीख / Date Of Hearing : 17/08/2017 घोषणा की तारीख/Date Of Pronouncement : 31/08/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: These Two Captioned Appeals Filed By The Revenue Pertaining To Assessment Year 2008-09 & 2010-11, Are Directed By Order Passed By The Ld. Commissioner Of Income Tax (Appeals), Which Is In Turn Arises Out Of Assessment Orders Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2. Since These Two Appeals Filed By The Revenue Pertain To Same Assessee, Different Assessment Years & Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity. The Revenue`S Appeal In Ita No.830/Kol/2015, Assessment Year 2008-09, Is Taken As A Lead Case.

For Appellant: Shri G. H. Sema, ACIT(DR)For Respondent: Shri Ashis Kumar Rustogi, FCA
Section 143(1)Section 143(2)Section 143(3)Section 43(5)Section 73

…bmitted that in order to determine whether the Explanation to Section 73 applies, the gross total income must be computed to ascertain whether it consists mainly of income chargeable under the head referred to in the Explanation. [Drshana Securities Pvt. Ltd, 341 ITR 556 (2012) ]. Section 4 of the Income Tax Act 1961 is the charging section for levy of Income tax which charges it in respect of the Total Income of the person. "Total income" means the total amount of, income referred to in section 5, computed in the manner laid down in this Act. Chapter IV of the Income Tax Act, 1961 deals with Computation of Total…

DCIT 7(2), MUMBAI vs. SHREE RADHEY SOFTWARE SOLUTION P. LTD, MUMBAI

ITA 3648/MUM/2013[2008-09]Status: DisposedITAT Mumbai29 Mar 2017AY 2008-09
For Appellant: NoneFor Respondent: Shri Vishwas Mundhe-DR
Section 115JSection 139Section 143(3)Section 73

…ng in shares and had suffered a loss during its regular course of business.Therefore, in our opinion,the AO was not justified in holding it to be speculative business .Before proceeding furhte,we would like to refer to the matter of Darshan Securities P. Ltd.(341 ITR 556),delivered by the Hon’ble Bombay High Court.Facts of the case were that the assessee had returned an income of Rs. 2,25,04,588/- from service charge and it had suffered a loss of Rs.2,23,32,127/- in share trading .It had earned dividend income of Rs.4,79,325/-.It claimed that in computing the gross total income for the purpose of the Explanation…

M/S JALAN CEMENT WORKS LTD,KOLKATA vs. C.I.T KOLKATA - I, KOLKATA

In the result, assessee’s appeal stands allowed

ITA 1112/KOL/2013[2008-09]Status: DisposedITAT Kolkata24 Aug 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year :2008-09 M/S. Jalan Cement Works V/S. Cit, Kolkata-1 Ltd 2Nd Floor, Room No Aayakar Bhawan, 202, 81, Netji Subhas Road, P-7, Chowringhee Kolkata-700 001 Square, Kolkata- [Pan No.: Aaacj6788R] 700 069 .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 143(3)Section 263Section 73

…rder of Hon’ble High Court of Calcutta in the case of CIT Vs. Middleton Investment & Trading Co. Ltd. in ITA 196 of 1999 where the issue was decided in favour of assessee after having the reliance in the case of CIT Vs. Darshan Securities (P) Ltd. reported in 341 ITR 556. The relevant extract is reproduced below:- “The ambit of sub-section (1) of section 73 is only to prohibit the setting off of a loss which has resulted from a speculation business, save and except against the profits and gains of another speculation business. In order to determine whether the exception that is carved out by the explanation appli…

USHITA TRADING & AGENCY LIMITED,KOLKATA vs. CIT-1, KOLKATA, KOLKATA

In the result, the appeal of the assessee is allowed

ITA 841/KOL/2012[2008-2009]Status: DisposedITAT Kolkata11 Aug 2016AY 2008-2009

Bench: Shri M. Balaganesh, Am & Shri K. Narasimha Chary, Jm]

For Appellant: Shri S. Jhajharia, CAFor Respondent: Shri Niraj Kumar, CIT, DR
Section 143(3)Section 143(4)Section 263Section 73

…accordingly." Aggrieved by the order of the learned Tribunal, the revenue has come up in appeal. At the time of hearing, Mr. Saraf, learned advocate very fairly drew our attention to the judgment in the case of CIT vs. Darshan Securities (P) Ltd. reported in 341 ITR 556 wherein the following view was taken: "The ambit of sub-section (1) of section 73 is only to prohibit the setting off of a loss which has resulted from a speculation business, save and except against the profits and gains of another speculation business. In order to determine whether the exception that is carved out by the Explanation applies, th…

D.C.I.T.CC-XI-KOLKATA, KOLKATA vs. M/S SAMRIDDHI STOCKS PVT. LTD., KOLKATA

In the result, the appeal of revenue is dismissed and the Cross Objection of assessee is partly allowed

ITA 2485/KOL/2013[2010-11]Status: DisposedITAT Kolkata18 May 2016AY 2010-11

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Respondent: Shri A. K. Sinha, JCIT, Sr. DR
Section 10(34)Section 143(1)Section 14ASection 37(1)Section 73

…e up in appeal. At the time of hearing, Mr. Saraf, learned advocate very fairly drew our attention to the 4 ITA No.2485/K/2013 & CO No.145/K/2013 M/s. Samridhi Stocks Pvt. Ltd. AY 2010-11 judgment in the case ofCIT vs. Darshan Securities (P) Ltd. reported in 341 ITR 556 wherein the following view was taken: "The ambit of sub-section (1) of section 73 is only to prohibit the setting off of a loss which has resulted from a speculation business, save and except against the profits and gains of another speculation business. In order to determine whether the exception that is carved out by the Explanation applies, t…

INCOME TAX OFFICER WARD-4(4), KOLKATA vs. M/S PAWAN INDUSTRIAL CORPORATION PVT. LTD., KOLKATA

In the result, appeal by the revenue is dismissed

ITA 2160/KOL/2013[2004-05]Status: DisposedITAT Kolkata04 May 2016AY 2004-05

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2004-05

For Appellant: Shri Rajat Kr.Kureel, JCITFor Respondent: Shri S.M.Surana, Advocate
Section 14ASection 24Section 73

…Calcutta High Court upheld the order of the Tribunal accepting the contention of the Assessee. The Hon’ble Calcutta High Court in coming to the above conclusion, followed the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Darshan Securities 341 ITR 556 (Bom) wherein it was held that Explanation to s. 73 is designed to define a situation where a company is deemed to carry on speculation business. It is only thereafter that sub-s. (1) of s. 73 can apply. Applying the provisions of s. 73(1) to determine whether a company is carrying on speculation business would reverse the order of application. O…

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CIT v. Darshan Securities (P) Ltd. (341 ITR 556) — Cited in 27 Judgments | BharatTax