Under Explanation to section 73 of Income Tax Act, 1961 even delivery-based loss on shares is “speculation” loss

Under Explanation to section 73 of Income Tax Act, 1961 even delivery-based loss on shares is “speculation” loss Brief:- (i) The Explanation to s.73 creates a fiction that the loss suffered by certain companies from the business of purchase & sale of shares shall be deemed to be speculation loss. The Explanation is not inconsistent with the object of introduction. The CBDT Circular dated 24.7.1976 cannot be treated as guide for interpretation of s. 73 when the provision is very clear and free from any ambiguity; (ii) The definition of “speculative transaction” in s. 43(5) is not ap...