Document Fragment View

Matching Fragments

He invited our attention to the following contents of the letters dt. 12th Jan., 2000 and 12th Feb., 2000 furnished by the assessee before AO along with various details:
Letter dt. 12th Jan., 2000
7.- We have not carried out any speculation or even no purchase or sales have been done on own account with intention for ourselres. These transactions are incidental to our broking business. To make it more clear the transactions are such where client on whose behalf transactions were done, did not agree for such transaction due to human errors like, not listening correctly regarding buy or sale orders. (Our transactions are mainly done telephonically only). Hence we have to take these transactions in our account. Many a time at final hours parties could not be contacted and we had to clear the transactions considering other facts like wide fluctuations, margins and pay in difficulties, when parties did not agree for same. We have to take these types of transactions also in our account. Hence our transactions being incidental to broking business are not hit by Section 73 (Explanation) and same are allowable as expenses/losses incurred necessarily and exclusively for business purpose.