1973 (3) TMI 32

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....erred under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee: "Whether, on the facts and in the circumstances of the case, the disallowance of the claim for the set off of the loss of Rs. 6,187, against the assessee's business income on the ground that it was a speculation loss was justified in law? " One Kannappa Chettiar was carrying on business in yarn. On Janua....

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....assessment year 1962-63 the assessment was completed in the hands of the petitioner herein as the legal representative of Kannappa Chettiar. The petitioner claimed a sum of Rs. 9,500 as a business loss. The Income-tax Officer considered this amount as a speculative loss and disallowed it ; at the same time he assessed the sum of Rs. 3,313 as business income. On appeal, the Appellate Assistant Comm....

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....n business and allowed a set-off against the sum of Rs. 9,500. For the balance of Rs. 6,187 it was held that since it was a speculation loss, it could not be set off against the income from other sources of business. At the instance of the assessee the above question has been referred. Section 43(5) of the Income-tax Act, 1961, defines "speculation transaction " as meaning a transaction in whic....

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....actual delivery of the goods is not given under the settlement of contract, then the intention of the parties at the time of the contract is immaterial. We have considered this point fully in T.C. No. 130 of 67 and we have held that wherever delivery of the goods is not effected under the settlement the transaction will be a speculative transaction irrespective of the intention of the parties at t....