Law:

Section:

Section 73 of the Income-tax Act, 1961 - Losses - In speculation business - Assessment year 1994-95 - Assessee-company claimed set off of loss on sale of shares against 'interest income', 'dividend income', 'hire charge income' and 'other income' - Assessing authority disallowed assessee's claim on ground that loss suffered by assessee in its share dealing was speculation loss within meaning of section 73 and same could be set off only against profits of another speculation business - Assessee claimed that its principal business was of granting loans and advances and, thus, under Explanation to section 73, it was entitled to set off of loss as claimed - Tribunal accepted contention of assessee and set aside order of Assessing Officer - Whether since Tribunal had not considered whether assessee-company could prove that its principal business was of granting loans and advances and, thus, came within exception stipulated in Explanation to section 73, order passed by Tribunal was to be set aside - Held, yes FACTS The assessee-company claimed that loss suffered by it in respect of a share transaction could be set off against the 'Interest income', 'Dividend income', 'Hire charge income' and 'Other income'. The assessing authority disallowed the claim of the assessee for set-off on the ground that the said loss was speculation loss within the meaning of section 73 and the same could be set off only against profits of another speculation business. On appeal, the assessee contended that it was a company whose principal business was of granting loans and advances and, therefore, under Explanation to section 73, it was entitled to set-off of said loss. The Commissioner (Appeals) accepted the assessee's contention and set aside the order of the Assessing Officer. On further appeal, the Tribunal upheld the order of the Commissioner (Appeals). On appeal : HELD In the instant case, admittedly, the assessee was claiming loss in respect of the share transaction, which was the speculation business within the meaning of section 73. Section 73 provides that the loss incurred in the speculation business shall not be set off except against the profits and gains, if any, of another…

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