2014 (2) TMI 943

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.... 2. The first issue in this appeal of revenue is against the order of CIT(A) in allowing setting off of speculation loss of earlier years against the profit of the same business. For this, revenue has raised following ground no.1: "1. That "on the facts and circumstances of the case and in law the Ld. CIT(A) erred in allowing set off of speculation loss of earlier year against profit of the same business during the current year whereas the act clearly specified that such loss can be set off against 'any other' speculation business". 3. We have heard rival submissions and gone through facts and circumstances of the case. The AO noted in his assessment order that this loss pertains to AY 2006-07 and in AY 2006-07 it was treated as speculat....

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....off of brought forward losses was not allowed, According to the appellant, there is a clear change of opinion by the assessing officer. Thus, it is contended that when the set off of carried forward/ brought forward losses is allowed in the assessment year 2007-2008, the same should be allowed in the assessment year 2008-2009 also. I have considered the submissions and perused the material placed on record. From the facts as brought on record, it is apparent that there has not been any change in the nature of the transactions during the year under consideration as compared to the preceding year. The nature of transactions in shares and securitìes as carried out by the appellant company is admittedly speculative. ln CIT v. Soorajmall....

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....ng to Rs.1,52,52,380/- was allowed to be carried forward to be set off of subsequent years' speculation business profit against this speculation loss. The assessee has claimed this speculation loss amounting to Rs.90,08,664/- for AY 2007-08 against its profits and balance sum of Rs.51,71,250/- was claimed in the relevant AY 2008-09. In AY 2007-08, there is no objection on the part of the revenue. It is also a fact that revenue has treated this loss in AY 2006-07 as speculation loss arising out of the same business. In this year also the assessee is carrying on share trading activity in share business which is a speculation business in term of explanation to Section 73 of the Act. Once this is the position, we find no infirmity in the order ....

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.... "The Court: The question for consideration in both the appeals is whether rebate under Section 88E in respect of securities transaction tax is admissible in a case where the income is assessed under the concept of minimum alternative tax under Section 115JB of the Income Tax Act. Mr. Khaitan, Learned Senior advocate happened to be present when the matter was taken up for hearing. He pointed out that this question is already covered by a judgment of the Karnataka High Court. He produced a copy of the judgment in the case of the Commissioner of Income Tax vs. M/s. Horizon Capital Ltd. wherein the following view was taken: "17. Therefore, the contention that this benefit is not available to the assessee whose total income is assessed under ....