TaxTMI 
TaxTMI 
2017 (6) TMI 79
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....) Both the lower authorities erred in not allowing set off of speculation loss brought forward from Assessment Year 2001- 02 against the speculation profit of the current year. 2) Having regard to the facts and circumstances of the case and the provisions of law, the appellant submits that the Assessing Officer be directed to set off speculation loss brought forward from Assessment Year 2001-02 against the speculation profit of the current year. 3) Both the lower authorities erred in not carrying forward speculation loss for set off in future years - Rs. 1,73,127/-. The Appellant craves leave to add to, alter or amend, the above Grounds of Appeal as and when advised. 3. At the outset we note that there is a delay of 141 days in ....
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....bove paragraphs, the speculation loss carried forward in A.Y.2008-09 is also reduced from Rs. 1,73,127/- to Nil. Penalty proceedings u/s.271(1)(c) of the I.T. Act, 1961 for furnishing inaccurate particulars of income. 7. Upon assessee's appeal Ld. CIT-A held as under:- I have considered the facts of the case. The appellant earned speculation loss in A.Y. 2001-02. Such speculative loss of Rs. 1, 73,127/- for A.Y. 2001-02 had been adjusted by the appellant against the speculation profit of the year of Rs. 5,27,331/-. Section-73 of the Income Tax Act deals with loss in speculation business. As per sub-section (4), no loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessmen....
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....e Jute Industries Ltd. vs. CIT reported in 121 ITR 921, judgement dated 10.10.1979. The Hon'ble Supreme Court held a under:- "Loss - Carry forward and set off - Law applicable - Before amendment by Finance (No.2) Act, 1957, loss could be carried forward from year to year until completely absorbed but after the amendment, it could be carried forward only upto 8 years - loss incurred in asst. Yr. 1950-51 could not be set off against income of asst. year 1960-61 as, unless otherwise provided expressly or by necessary implication, law to be applied is that in force in the relevant assessment year". The above decision of Hon'ble Supreme Court in the case of Reliance Jute and Industries had been referred and applied by various Court ....
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....mean, nothing should be presumed or implied. Primarily the language employed is the determining factor of the intention of the Legislature. The intention of the Legislature must be found in the words used by the Legislature itself It is a well-settled rule of construction that, in the first instance, the grammatical sense of the words is to be adhered to and the elementary rule is that the words used in a section must be given their plain grammatical meaning. The provisions of section 74(1) of the Income-tax Act, 1961, as substituted with effect from April 1, 2003 use the present tense which refers to long-term capital loss of the current year. Therefore the provisions of section 74(1) at substituted with effect from April 1, 2003 are....
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....of section 74(1) clearly indicate this position and it appears to be the intention of the Legislature which was that the provisions would deal with the carry forward and set-off of long-term capital loss relating to the assessment year 2003-04 and onwards. The golden rule of construction is that, in the absence of anything in the enactment to show that it is to have retrospective operation, it cannot be so construed as to have the effect of altering the I applicable to a claim in litigation at the time when the Act was passed. The right which accrued to the assessee by 'rtue of section 74(1) as it stood prior to the amendment made with effect from April I, 2p03 has not been taken away either expressly by the provisions J section 74(1....