Dhananjaya Y Chandrachud, J. - (1.) Leave granted.
(2.) This appeal arises from a judgment of a Division Bench of the High Court of Calcutta dated 22 November 2016 in an appeal under Section 260A of the Income Tax Act, 1961.
(3.) The appellant was registered as a non-banking financial company under the Reserve Bank of India Act, 1934. The appellant filed its return of income on 27 September 2008. The return was processed under Section 143(1) on 8 October 2009. On the case being selected for scrutiny, a notice was issued under Section 143(2). By an order dated 14 December 2010 the assessing officer recorded that the principal business activity of the assessee is trading in shares and securities. The loss from share trading was held to be a speculation loss. The assessing officer held that in view of the provisions of Section 43(5)(d), activities pertaining to futures and options could not be treated as speculative transactions.The loss from speculation was held not to be capable of being set off against the profits from business.;