2013 (10) TMI 648

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....ted 31.12.2010. 2. The appeal raises a single issue, per its two grounds, i.e., the maintainability in law of the claim of set off of the brought forward business loss of the earlier years in the sum of Rs.34,63,790/- by the assessee against the business and speculation profit for the current year. It would be relevant to recount the background facts of the case. The assessee, an individual, is a trader or otherwise deals in shares and securities. As the same also involves speculative transactions, i.e., where the contract of purchase and sale is settled otherwise than by actual delivery or transfer (of the securities bought or sold), the assessee's claim for set off of brought forward loss for the earlier years, being A.Ys. 2000-01 to 2....

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....off against above profit from A.Y. 2000-01 to 2003-04 (as per above) 18,01,564.26 balance trading (deliver) loss of set off against above profit 2,33,017.14 Balance speculation profit as per return 14,72,638.43 Further, as there were variances in the details furnished by the assessee at various times, and which it failed to reconcile or otherwise substantiate, he assessed the income at Rs.77,37,540/-, i.e., as originally assessed (vide order u/s.143(3) dated 29.12.2006), disallowing the entire claim for set off of brought forward business loss of Rs.34,63,790. The same stood confirmed in appeal by the ld. CIT(A). It was not open for the assessee to say that a part of the brought forward business loss was in fact not speculative, an....

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....aring. So however, while no such break-up, i.e., as between speculative and non- speculative income, as furnished by the assessee during the assessment proceedings for the current year, in respect of the brought forward loss(es), could be admitted, there is no reason or basis for not admitting its claim insofar as it relates to the business income (profit) for the current year, claimed to be speculative in part. As regards the difference in the figures filed by the assessee, the same would be, and again for the same reason, irrelevant. It is only the business loss/es as returned and admitted for the earlier years that would qualify for being brought forward and, accordingly, set off against the current year's income. In fact, the assesse....