2013 (2) TMI 212

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....e-compute the income of the assessee in order to give the appeal effect by first setting-off the carry forward speculative losses against the speculative profit and then set-off the business losses to the extent of the balance speculation profit and other income? B. Whether the impugned order passed by the ITAT is perverse both in facts and law?"   2. The appeal arises out of the order passed by the Income Tax Appellate Tribunal on 11.5.2012 in ITA No.4196/Del/2011 relating to the assessment year 2000-01. In the return filed on 31.10.2000, the assessee set off the brought forward loss from speculation business quantified at Rs.14,43,625/- and Rs.75,39,186/- for the assessment years 1999-2000 and 1998-1999 respectively against the....

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....,39,841/- which were allowed to be carry forward to the subsequent years. This method of adjustment of the brought forward speculation losses was disadvantageous to the assessee in the sense that under sub-section (2) of section 73 of the Act, the carried forward losses can be set off only against the speculation profits and not against other profits. Moreover the speculation loss could not at that time be carried forward for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed. Thus the method of adjustment adopted by the AO was disadvantageous to the assessee in whose computation in the return of income, the entire brought forward losses stood adjusted against the speculation pr....

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....ion 24 of the 1922 Act, it has not been withdrawn and therefore held the field even under section 73 of the 1961 Act. In this view of the matter, he upheld the assessee's method of adjusting the brought forward speculation losses against such speculation profits. This method was found by the CIT(Appeals) to be more advantageous to the assessee. He thus allowed the appeal. 7. The revenue carried the matter in appeal before the Tribunal. The Tribunal after noticing the view taken by the income tax authorities dismissed the appeal by observing as under:- "14. We have heard the rival contentions in light of the material produced and precedent relied upon. We find that Ld. Commissioner of Income Tax (Appeals) has adopted the correct approa....