Law: Income Tax Act, 1922

Section: 29,10(1),24,24(1)

Income-tax Act, 1922 -- Sections 10(1), 18A(8), 24(1) Proviso Sections 29, 46 -- Loss -- Set off of loss -- Loss in speculations -- Set off against business income of the same year -- Whether permissible -- Held yes -- Penal interest -- No separate order passed for imposing penal interest -- Penal interest, whether valid in law -- Held no -- Imposition of penal interest -- No order as contemplated by section 29 passed by Income-tax Officer -- Mere demand notice in Form I.T. 30 including demand of penal interest -- Held, not sufficient to make imposition of penal interest valid in law -- Set-off of loss -- Assessee entitled to an adjustment of speculative losses against profits and gains under section 10(1) -- Income-tax Officer not entitled to disallow claim to such adjustment by reference to proviso to section 24(1) -- Corresponding Sections: Income-tax Ordinance, 1979 -- Sections 22(a), 34, 87(2) -- ORDER The order was passed by M. EUSUF, Judicial Member.--- This appeal is directed against the order passed by the appellate Assistant Commissioner, on 25-10-67 in I.T.A. 15.C-1 of 1966-67, relating to the assessment year 1961-62. 2. The learned Advocate appearing on behalf of the assessee. appellant has pressed the following two grounds only during the hearing of the appeal. (1) The levy of a sum of Rs. 11,332 as penal interest was illegal as it was not based upon any appropriate order passed by the Income-tax Officer. (2) The Appellate Assistant Commissioner was wrong in maintaining the disallowance made by the Income-tax Officer on account of loss suffered by the assessee on shares and bonus vouchers. Ground No. 1 3. The learned Advocate appearing on behalf of the assessee-appellant has brought to our notice a decision of the Karachi Bench of this Tribunal made on 31-5-1967 in I.T.A. Nos. 2412 of 1964-65 of 1965-66 on exactly the same point. We have very carefully gone through the same decision and are in complete agreement that where no order as contemplated by Section 29 of the Income-tax Act has been passed, the mere service of a demand notice, along with a duly filled in form I.T. 30 in which demand was also made of penal interest is not sufficient to make…

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