Law:

Section:

Section 73 of the Income-tax Act, 1961 - Losses - In speculation business - Income-tax Officer held that certain loss incurred by assessee-company was in speculative transactions and could not be set off against its income from oil business - On appeal before AAC, assessee did not seriously contend this point as in terms a decision of High Court even speculative loss could be set off against income from other business - On appeal before Tribunal, revenue pointed out that Supreme Court had overruled aforesaid decision of High Court - Assessee thus, sought to argue question of nature of transaction in question but Tribunal did not permit it do so - Whether since assessee, acting on a wrong legal advice did not press appeal on main question on which parties were at controversy, it could not amount to any admission of fact or unqualified withdrawal of ground taken before Appellate Assistant Commissioner - Held, yes - Whether, in such a situation, there was no principle of law justifying such conduct of assessee as coming within mischief of doctrine of estoppel - Held, yes - Whether, therefore, Tribunal was in error in disallowing assessee to argue that transactions in question were in reality hedging contracts and not speculative transactions - Held, yes FACTS The assessee before the Income-tax Officer pleaded that certain loss was incurred on account of failure on the part of the assessee to fulfil the contract for supply of oil to his customers and being a business loss he set off the same against the income of the oil business for the year. The Income-tax Officer held that aforesaid loss was incurred in speculative transactions and as such the loss could not be set off from the income of the oil business. On appeal, the Appellate Assistant Commissioner, observed that the losses were incurred on account of speculative transactions. Being faced with that observation the assessee did not seriously contend before the Appellate Assistant Commissioner to the contrary inasmuch as on the law as declared by the High Court even the speculative losses could be set off against income from other business done in the year. The Appellate Assistant Commissioner granted the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492