1979 (5) TMI 1

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.... carrying on a business in speculation. Apropos the speculation business of the assessee the ITO determined a loss of Rs. 40,510, a loss of Rs. 598 and a profit of Rs. 1,36,264 for the assessment years 1964-65, 1965-66 and 1966-67, respectively. In apportioning the assessee's income amongst its partners under s. 67 of the I.T. Act, 1961, hereinafter referred to as " the Act ", he also apportioned the losses in speculation business in the two assessment years 1964-65 and 1965-66. The profit in speculation business as computed for the assessment year 1966-67 was also apportioned by the ITO amongst the partners. The assessee contended before the ITO that the losses in the speculation business could not be apportioned between the partners but ....

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....ed in this court by special leave. Identical questions arose in respect of the assessment years 1967-68, 1968-69 and 1969-70. The High Court answered the references made in respect of those three years also against the assessee by its judgment and order dated the 24th May, 1977. Civil Appeals Nos. 365 to 367 of 1978 have been preferred from the said decision of the High Court. In the case of Kantilal Nathuchand [1967] 63 ITR 318 (SC), the question for consideration was whether on a true interpretation of the various provisions of the Indian I.T. Act, 1922, speculation losses of the assessee-firm for the assessment years 1958-59 and 1959-60 should be set off against its speculation profit in its assessment for the assessment year 1960-61. ....

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....ness, shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and-- (i) it shall be set off against the profits and gains, if any, of any speculation business carried on by him assessable for that assesssment year ; and (ii) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on...... " " 75. Losses of registered firms.--(1) Where the assessee is a registered firm, any loss which cannot be set off against any other income of the firm shall be apportioned between the partners of the firm, and they alone shall be entitled to have the amount of the loss set off and carried forward for set off under sec....