Loss not speculative when shares were acquired on conversion of partly convertible debentures

Abhar Holdings Private Limited Vs DCIT (Gujarat High Court) Gujarat High Court held that Explanation to section 73(1) of the Income Tax Act cannot be applied to loss on sale of shares which were acquired on conversion of partly convertible debentures. Hence, loss on sale of such shares is not speculation loss and hence set off allowed. Facts- By this Appeal under Article 260A of the Income Tax Act, 1961, the appellant has challenged the order dated 2nd March, 2007 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench ‘A’, Ahmedabad for Assessment Year 1996-97. It is mainly conteste...