Registered firm speculation loss carry-forward barred under the Income-tax Act, 1961 despite later speculation profits.

Under the Income-tax Act, 1961, a registered firm cannot carry forward speculation loss of an earlier year and set it off against speculation profits of a later year. Section 73 governs speculation losses, and section 75(2) contains an express bar against a registered firm carrying forward and setting off its losses under sections 72, 73 and 74. The position under the 1922 Act was distinguishable because it depended on apportionment of loss among partners, a feature absent in the 1961 scheme. Section 182(2) was also consistent with this approach, as only a partner's share of loss could be carried forward and set off under sections 70 to 75.

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Issues: Whether a registered firm governed by the Income-tax Act, 1961 could carry forward speculation loss of an earlier year and set it off against speculation profits of a later year.

Analysis: The scheme of sections 70 to 75 of the Income-tax Act, 1961 was compared with section 24 of the Indian Income-tax Act, 1922. Under the 1961 Act, section 73 deals with speculation losses and section 75(2) creates an express bar against a registered firm having its losses carried forward and set off under sections 72, 73 and 74. The earlier decision under the 1922 Act turned on the link between apportionment of loss among partners and the firm's ability to carry forward such loss, but that link was absent in the 1961 Act. Section 182(2) was also consistent with this scheme, since a partner's share of loss alone could be carried forward and set off in accordance with sections 70 to 75.

Conclusion: A registered firm cannot carry forward speculation loss of one year and set it off against speculation profits of a subsequent year under the 1961 Act.

Ratio Decidendi: Where the statute expressly bars a registered firm from carrying forward and setting off losses under the relevant provisions, the firm cannot claim such set-off notwithstanding the treatment adopted under the earlier enactment.

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