2014 (1) TMI 17

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....t-1) under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act) and under Section 142 (1) of the Act, initiating proceedings for re-assessment against the petitioner. Writ-Tax No. 1552 of 2005 is related to the Assessment Year 1999-2000, Writ-Tax No. 1553 of 2005 is related to the Assessment Year 2000-2001 and Writ-Tax No. 1559 of 2005 is related to the Assessment Year 1998-1999. In these writ petitions common questions of law and fact are involved between the same parties as such the writ petitions are consolidated and heard together and are being decided by a common judgment. In this judgment fact relating to the Writ-Tax No. 1552 of 2005 are being noticed. 3. M/S Saurabh Industrial Financing Ltd. (the petitione....

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....as 'speculative business' as such loss of Rs. 3,00,000/- in share trading activities are not liable to be adjusted towards profits of business of the company. The petitioner in his return has illegally adjusted this amount. Accordingly income to the tune of Rs. 3,00,000/- was escaped assessment. The petitioner has challenged the notices on the ground that Explanation to Section 73 of the Act is not applicable to the petitioner and there was no reason for exercise of powers Section 147 of the Act as such notices for reassessment are null and void. 4. We have considered the respective arguments of the counsel for the parties and perused the record. Only controversy arises in these writ petition is as to whether the petitioner is entitled t....

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....ears 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 the granting of loans and advances consists in the purchase and sale of shares of other companies, such company shall, for the purposes of this section, be deemed to be carrying on a speculation business to the extent to which the business consists of the purchase and sale of such shares. 5. Section 73 provide....