TaxTMI 
TaxTMI 
2004 (6) TMI 288
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....: 2. The assessee is a public limited company carrying on business as an investment company. It also derived income from other sources. The assessee filed its return of income on 1-12-1997. The income declared for the current year was set off with carried forward business loss relating to assessment year 1996-97 and nil income was declared under regular assessment proceedings. The assessee computed income under section 115J of the Income-tax Act, 1961, at Rs. 32,960 and paid tax accordingly. 3. The assessee during the year traded in purchase and sale of shares. This trading was divided into speculative and non-speculative transactions. The assessee had a net loss of Rs. 9,61,168 from non-speculative transactions. It had a profit on sp....
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....thority agreed with the Assessing Officer and dismissed the appeal filed by the assessee. Further aggrieved, the assessee is in appeal before us. 6. The learned counsel for the assessee submitted that section 73 of the Income-tax Act, 1961, does not apply to the facts of the assessee's case as the undisputed fact is that the assessee had no losses in speculative business. He further argued that once section 73 itself is not applicable, the explanation cannot be invoked by the Assessing Officer. Thus, he prayed for relief. Alternatively, he contended that the assessee had earned commission income by arranging a party for taking on lease certain commercial property, that the income therefrom was lawfully assessable under the head '....
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....cts of the case. On the issue of classification of commission as income from other sources, he submitted that the assessee had itself declared this income under the head 'Profits and gains of business' and it has been assessed as such. He submitted that it is not open for the assessee to turn around and claim the same under the head 'other sources'. He relied upon the order of the CIT(A) and submitted that the same should be upheld. 8. Rival contentions have been heard. We have read all the papers on record and the orders of the authorities below as well as the case law cited by both parties. The undisputed fact in this case is that the assessee had non-speculative transactions in shares as well as speculative transaction....
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....enditure on scientific research, the provisions of sub-section (2) of section 72 shall apply in relation to speculation business as they apply in relation to any other business. (4) No loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed. Explanation.- Where any part of the business of a company other than a company whose gross total income consists mainly of income which is chargeable under the heads 'interest on securities', 'income from house property', 'capital gains' and 'income from other sources', or a company the principal business of which is the business of banking or t....
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....in that year, and so on. The Amending Act has added an explanation to section 73 to provide that the business of purchase and sale of shares by companies which are not investment or banking companies or companies carrying on business of granting loans or advances will be treated on the same footing as a speculation business. Thus, in the case of aforesaid companies, the losses from share dealings will now be set off only against profits or gains of a speculation business. Where any such loss for an assessment year is not wholly set off against profits from a speculation business, the excess will be carried forward to the following assessment year and set off against profits, if any, from any speculation business. 19.2 The object of....