Section 73 of the Income-tax Act, 1961 - Loss - The only issue in the appeal of the assesssee is as to ”whether the CITA was justified in upholding the disallowance of loss of Rs 1,71,27,528/- as deemed speculation loss u/s 73 of the Act in respect of delivery based transactions of purchase and sale of shares, in the facts and circumstances of the case“. ITAT allowed the appeal of the assessee with the majority view holding that :- The assessee-company has treated the entire activity of purchase and sale of shares, which comprised of both the delivery based and non-delivery based trading as one composite business and accordingly claimed set off of the loss incurred in delivery based trading against profit derived from derivative trading. The aggregation of the share trading loss and profit from derivatives transaction should be done before application of Explanation to section 73 of the Act and since there was surplus profit on such aggregation. Explanation to section 73 would not be applicable“. LOHIA SECURITIES LTD.Vs Deputy CIT [2020] 180 ITD 001 (ITAT-KOLKATA)